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Boston Fed chief urges tighter money market rules

Boston Federal Reserve chief Eric Rosengren backed greater regulation of the $2.5 trillion money market mutual fund industry on Friday, including new rules being floated by the Securities and Exchange Commission chief.

At a conference in Amsterdam sponsored by the Dutch Central Bank, Rosengren said that money fund managers “may be inviting trouble” by promoting funds as essentially risk-free, while managers are in fact taking risks on investments that can lose value.

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