US-dollar Libor may survive as a benchmark beyond official plans for its 2021 phaseout, but it is unlikely to last until 2025 because of its waning market, a senior US Federal Reserve official said.
David Bowman, head of the Fed-sponsored effort to transition away from the scandal-plagued benchmark, said it will be “a very hard slog” for Libor’s administrator to continue its publication for long.
“It is very unstable,” Bowman, a senior advisor to the Fed’s board of governors, said at a recent Washington conference*. “Maybe they can continue to produce it for some time past 2021. But to 2025 or 2030? Very, very difficult.”
Libor unlikely to survive until 2025 due to thin market, Fed’s Bowman says
19 October 2018 2:13pm