Cash in money market accounts at record level as rate cuts loom

The amount of cash held by investors in money market accounts reached a record level in August, even as looming interest rate cuts would lower their returns.

Money market account assets hit $6.24 trillion this month, according to data from the Investment Company Institute as of Aug. 21, despite markets becoming increasingly confident that the Federal Reserve will cut interest rates at its Sept. 17-18 policy meeting.

When the central bank reduces the benchmark federal funds rate, financial...