The Fed’s Powell and CFTC’s Giancarlo: How to Fix Libor Pains
There’s a good chance your credit card, floating-rate mortgage, car loan and even the investment funding for the company where you work are all influenced by an arcane interest rate known to market professionals as Libor. Once called the London interbank offered rate, Libor is meant to reflect the interest rate that large banks must pay to borrow short term. The British Bankers’ Association has called it “the world’s most important number.”
Their op-ed in the Wall Street Journal can be found here.