Following the Federal Open Market Committee’s surprise cut in the federal funds rate by 75 basis points to 3.50% on Jan. 22, tax-free money market funds ended the first month of 2008 on a positive note, reporting inflows of $939.5 million for the week ending Jan. 29, according to the Money Fund Report.

The strong inflow activity brought the total assets under management among 550 funds included in the report to $483.24 billion. In the prior week, the 551 tax-free funds in the report suffered outflows of $590.7 million ahead of the fed action, which accounted for $482.31 billion of assets under management.

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