Libor unlikely to survive until 2025 due to thin market, Fed’s Bowman says

19 October 2018 2:13pm
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.”