This is what it costs investors to stay in cash — and what to do instead
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What to know about This is what it costs investors to stay in cash — and what to do instead
While money markets and certificates of deposit are still producing solid yields, sitting in too much cash could be costing investors money.
Claims checked
11
Techniques found
0
Topics
0
Coverage spectrum
Coverage gap: Low Left coverage5 sources compared across this story cluster. This is an eFinder estimate from indexed source coverage, not an editorial rating.
What happened
While money markets and certificates of deposit are still producing solid yields, sitting in too much cash could be costing investors money.
Why it matters
Investors have piled into cash equivalent assets in recent years — and they have stayed despite the central bank's decision to cut the federal funds rate three times last year.
Common ground
The Fed's last decrease was in December and it's now on hold as it watches economic data and the impact of the Iran war.
Perspective signals
No major persuasion pattern has been attached yet, so the source, headline, and evidence should carry most of the weight for readers.
Follow-up questions
- What concrete event or decision sits underneath the headline: This is what it costs investors to stay in cash — and what to do instead?
- What evidence would most clearly confirm or weaken the claim that In prior rate-cutting cycles, the one-year average return on cash after cuts began following a pause of three months or longer was about 2.8%, a BlackRock analysis showed?
- What should readers watch for in the next update to know whether the story is changing?
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Read the original article: https://www.cnbc.com/2026/05/06/this-is-what-it-costs-investors-to-stay-in-cash-…
fact_checkClaims Checked
eFinder analyzed this article and checked 11 claims against available evidence, cross-references, web search, and Wikipedia. Here is what the fact-checking layer found.
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Insufficient Evidence
6
info
Single Source
3
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Corroborated
1
schedule
Pending
1
Claim 1: “In prior rate-cutting cycles, the one-year average return on cash after cuts began following a pause of three months or longer was about 2.8%, a BlackRock analysis showed”
INSUFFICIENT EVIDENCE
No evidence was found in the provided search results to support or refute the BlackRock analysis regarding cash returns.
Claim 2: “bonds have historically delivered 7% to 9% over the same period, BlackRock noted”
INSUFFICIENT EVIDENCE
No evidence was found in the provided search results regarding BlackRock's notes on historical bond returns.
Claim 3: “the central bank's decision to cut the federal funds rate three times last year”
SINGLE SOURCE
The provided web search results are for a credit union's contact page and privacy policy, which contain no information regarding Federal Reserve interest rate decisions.
travel_explore
web search
NEUTRAL
— How can we help you today? Feel free to stop by one of our convenient branch locations, call us, email or send a message using the form below. We look forward to exceeding your expectations.
https://www.cityfederalcu.com/about/contact/
https://www.cityfederalcu.com/about/contact/
travel_explore
web search
NEUTRAL
— Easily and securely manage your accounts anytime, from anywhere, with City FCU’s online banking and mobile app. Once you enroll through online banking, you’ll use the same username/password to log int…
https://www.cityfederalcu.com/services/online-banking/
https://www.cityfederalcu.com/services/online-banking/
travel_explore
web search
NEUTRAL
— Rev. 1/2012 CITY FEDERAL CREDIT UNION PRIVACY POLICY
https://cityfederalcu.com/wp-content/uploads/2025/10/Privacy…
https://cityfederalcu.com/wp-content/uploads/2025/10/Privacy…
Claim 4: “That converts to a taxable equivalent yield of about 5.84%”
INSUFFICIENT EVIDENCE
No evidence was found in the provided search results to verify the taxable equivalent yield calculation.
Claim 5: “The firm used the Bloomberg US T-Bills 1-3 Month Index to represent cash”
INSUFFICIENT EVIDENCE
No evidence was found in the provided search results regarding the specific index used by BlackRock.
Claim 6: “Money market fund assets were at $7.63 trillion as of the week ended April 29, according to the Investment Company Institute”
CORROBORATED
Two independent web search results from the Investment Company Institute (ICI) explicitly state that total money market fund assets were $7.63 trillion for the week ended Wednesday, April 29.
travel_explore
web search
NEUTRAL
— Money Market Fund Assets Washington, DC; April 30, 2026—Total money market fund assets1 decreased by $10.98 billion to $7.63 trillion for the week ended Wednesday, April 29, the Investment Company Ins…
https://www.ici.org/research/stats/mmf
https://www.ici.org/research/stats/mmf
travel_explore
web search
NEUTRAL
— Money Market Fund Assets Washington, DC; April 30, 2026—Total money market fund assets 1 decreased by $10.98 billion to $7.63 trillion for the week ended Wednesday, April 29, the Investment Company In…
https://www.ici.org/topics/money-market-fund-assets
https://www.ici.org/topics/money-market-fund-assets
travel_explore
web search
NEUTRAL
— Money Market Fund Assets Washington, DC; April 23, 2026—Total money market fund assets1 decreased by $5.56 billion to $7.64 trillion for the week ended Wednesday, April 22, the Investment Company Inst…
https://www.iciglobal.org/research/stats/mmf
https://www.iciglobal.org/research/stats/mmf
Claim 7: “the majority of traders are not pricing in a cut at all this year, according to the CME FedWatch tool”
INSUFFICIENT EVIDENCE
The claim states the majority of traders are NOT pricing in a cut this year. However, the CNBC evidence citing the CME FedWatch tool explicitly states that 'Traders are currently pricing in two to three more rate cuts next year'.
travel_explore
travel_explore
web search
NEUTRAL
— What is the likelihood that the Fed will change the Federal target rate at upcoming FOMC meetings, according to interest rate traders? Use FedWatch to track the probabilities of changes to the Fed rat…
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch…
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch…
travel_explore
web search
NEUTRAL
— Traders are currently pricing in two to three more rate cuts next year, according to the CME Group's FedWatch tool, updated shortly after the decision.
https://www.cnbc.com/2025/09/17/fed-forecasts-only-one-rate-…
https://www.cnbc.com/2025/09/17/fed-forecasts-only-one-rate-…
Claim 8: “the iShares Short Duration Bond Active ETF (NEAR) ... has an effective duration of 2.14 years, has a 30-day SEC yield of 4.26% and an expense ratio of 0.25%”
PENDING
This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.
Claim 9: “Roughly 16% see odds of rates rising at the end of 2026, while almost 12% anticipate easing”
SINGLE SOURCE
The provided search results only contain dictionary definitions of the word 'approximately' and do not provide any data from the CME FedWatch tool regarding 2026 rate expectations.
travel_explore
web search
NEUTRAL
— APPROXIMATELY definition: 1. close to a particular number or time although not exactly that number or time: 2. close to a…. Learn more.
https://dictionary.cambridge.org/dictionary/english/approxim…
https://dictionary.cambridge.org/dictionary/english/approxim…
travel_explore
web search
NEUTRAL
— Approximately means close to, around, or roughly. The conservatory measures approximately 4m x 5m.
https://www.collinsdictionary.com/us/dictionary/english/appr…
https://www.collinsdictionary.com/us/dictionary/english/appr…
travel_explore
web search
NEUTRAL
— The meaning of APPROXIMATELY is in an approximate manner —used to indicate that a stated number, amount, or value is an approximation. How to use approximately in a sentence.
https://www.merriam-webster.com/dictionary/approximately
https://www.merriam-webster.com/dictionary/approximately
Claim 10: “municipal bonds, which have yields around 3.68%”
INSUFFICIENT EVIDENCE
No evidence was found in the provided search results regarding municipal bond yields.
Claim 11: “The Fed's last decrease was in December”
SINGLE SOURCE
The provided web search results are for a credit union's contact page and privacy policy, which contain no information regarding Federal Reserve interest rate decisions.
travel_explore
web search
NEUTRAL
— How can we help you today? Feel free to stop by one of our convenient branch locations, call us, email or send a message using the form below. We look forward to exceeding your expectations.
https://www.cityfederalcu.com/about/contact/
https://www.cityfederalcu.com/about/contact/
travel_explore
web search
NEUTRAL
— Easily and securely manage your accounts anytime, from anywhere, with City FCU’s online banking and mobile app. Once you enroll through online banking, you’ll use the same username/password to log int…
https://www.cityfederalcu.com/services/online-banking/
https://www.cityfederalcu.com/services/online-banking/
travel_explore
web search
NEUTRAL
— Rev. 1/2012 CITY FEDERAL CREDIT UNION PRIVACY POLICY
https://cityfederalcu.com/wp-content/uploads/2025/10/Privacy…
https://cityfederalcu.com/wp-content/uploads/2025/10/Privacy…
info
Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.