New York Fed Launches Committee to Oversee Benchmark Rate Evolution
1min read The New York Federal Reserve President John Williams has announced the establishment of a new institution composed of private market participants aimed at monitoring the use of benchmark or reference rates within financial markets.
In his address at the 10th Annual U.S. Treasury Markets Conference, Williams highlighted that this Reference Rate Usage Committee will commence meetings in October. The focus will be on critical issues related to the evolution of reference rate usage and potential changes in the markets that support them.
Williams emphasized that the group gathered by the New York Fed will also promote "best practices" related to the utilization of reference rates. This includes recommendations set forth by the Alternative Reference Rates Committee, which is endorsed by the Federal Reserve. These reference rates serve as benchmarks for setting other interest rates.
