Photographer: Andrew Harrer/Bloomberg

Fed-Convened Committee Narrows the Search for a Libor Alternative

  • Central bank’s new overnight bank funding rate is one option
  • Fed’s Powell says report lays out path that can succeed

A Federal Reserve-convened committee has narrowed its search for a replacement to Libor, the inter-bank interest rate underpinning trillions of dollars of derivatives and other lending transactions throughout the financial system that has been rocked by fraud scandals in recent years.

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