As the money market accounttends to be a trailing indicator, not a leading indicator, June was a good month for the money market account considering that it only dipped one hundredth of a percentage point during the month. All indications were that the market should have dipped a great deal more, which says a good deal for the immediate future staying power of money market accounts.Based on these indicators, money market accounts may be due for some relief, as money market rates have been excessively low for a while now, while inflation is still too high.

In the recent past, the interest rates of the money market have served as a great barometer for attitudes about the economy of the United States. As the market as a whole became optimistic, money market rates would rise. In the instances where the recovery faced a setback, money market rates sloped back down.

US Treasury yields have been falling from a February 2010 peak up until June of this year, when the yields rose enough to show a montly increase.

The real problem is determining whether this rise in rates is indicative of an economic turnaround, or just a natural market response to the news that the Federal Reserve is backing off of its quantitative easing program. However, as bond yields continue to rise, the money market rates will probably follow. As money market accounts move up, banks will be similarly pressured to follow suit with the money market account and other types of deposit accounts.

In early 2011, inflation has perked up because of the prices of oil. Inflation over 3 percent is a problem, as current money market rates are now under 1 percent. However, in May, oil prices started to fall a little, and this trend continued into June.

A rising oil barrel price usually signifies an optimism about the economy, but not this time – oil prices are actually slipping as optimism increases. Because this is the case, money market rates are set for a nice recovery.

Future growth in money market rates will probably be headed by the employment numbers. If job growth continues, we can expect a rise in money market rates, as new jobs signifies a real, quantitative improvement in the economy.