Libor’s Relevance Rising Again When It Comes to Fed Rate Outlook
This article is for subscribers only.
After dropping off the radar since its fall from grace during the financial crisis, the rate at which banks say they borrow from one another may be becoming relevant again.
The three-month London interbank offered rate, known as Libor, rose this week to a more than two-year high. That may be foreshadowing an interest-rate increase by the Federal Reserve by the end of year while other indicators such as futures provide more skeptical outlooks on the timing of tightening.