Magnetic North Financial: Economic Catalyst is about to be unleashed.

For the first time in three years, a major economic tailwind is poised to emerge—potentially as

early as September—and it’s coming from a surprising capital source

Let me explain:

Since 2019, U.S. Money Market funds have quietly accumulated a jaw dropping $7.25 trillion in

assets (as of June 30, 2025). This gradual buildup has been largely driven by rising interest rates,

which rewarded investors seeking safety with attractive yields—currently around 4.05%   for Schwab’s Government money market fund SNVXX (8/19/25)

But this dynamic is on the verge of a significant shift as the Federal Reserve appears to have

made a critical policy miscalculation.

Chairman Powell and the Federal Open Market Committee acted under the assumption that

tariffs would reignite inflationary pressures. However, the Bureau of Labor Statistics

(BLS)—which publishes official inflation figures—does not incorporate tariff data into its

calculations. And given that the executive branch nominates the BLS director, its unlikely the

methodology would be revised anytime soon.

(For those seeking a more independent perspective on inflation data, I recommend Truflation—a

platform aggregating private sector data for a more transparent view. No sign-up required.)

Now, back to the core issue:

Interest rates remain elevated, inflicting real financial strain on households and consumers

nationwide. If the Federal Reserve initiates rate cuts beginning in September and continues

through the end of 2025, we could see a rapid compression in money market yields.

This would have profound implications.

As the risk-free rate declines, the $7+ trillion currently parked in money market funds may begin

exiting in search of higher returns. Over the next 12 to 18 months, this capital could flow into

a wide array of risk assets—potentially providing a powerful boost to financial markets and the

broader economy.

Asset classes likely to benefit include equities, fixed income, private credit, Bitcoin, gold, real

estate, and myriad others.

In short: the game is about to change.

If you would like to discuss any of these points further or want to know how I figured out the BLS won’t calculate Tariff’s

I am happy to explain.

Cheers

Chris

Christopher R Lakian

Owner, Portfolio Manager, AIF

Magnetic North Financial LLC

3003 Dunes West Blvd Suite 29

Mt Pleasant SC 29466

Main Number: 843-353-0313

Cell: 843-737-6060

Global Relay Secure Text: 843-428-7827

Website: www.MagneticNorthFinancial.com

OneSeven ("OneSeven") is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. All titles listed for individuals associated with Magnetic North Financial represent the individual's role with Magnetic North Financial, and not their role with OneSeven. Services are provided under the name Magnetic North Financial, a DBA of OneSeven.