Trading assets at U.S. banks have surpassed $1 trillion for the first time since the financial crisis, marking a significant milestone in the banking sector. This surge in trading activity coincides with a notable increase in money market funds, which have reached an all-time high of $6.7 trillion as of November 2024. Analysts suggest that these funds represent 'cash on the sidelines' that investors are holding, potentially awaiting further actions from the Federal Reserve. Despite the Fed having cut interest rates by 75 basis points, the amount in money market funds continues to grow, raising questions about when this capital will flow back into the broader market. Additionally, U.S. money market fund assets have now exceeded $7 trillion for the first time, indicating a robust demand for liquidity among investors.