Oops! LIBOR Spikes Again (LIBOR Leads The Fed Target Rate Increases)

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

The London Interbank Offered Rate (LIBOR) has been rising since The Federal Reserve began raising their target rate back in late 2015 and has accelerated as The Fed began rapidly raising its target rate after Donald Trump’s election as President.

LIBOR 1 month is following a “jump process” where is surges or jumps periodically ahead of The Fed’s rate hike announcement. But the NY Fed’s SOFR index tracks the Fed’s target rate

thibor

As closer look since SOFR was introduced.

closerlook.png

So, the New York Fed’s SOFR index takes out the front-running of The Fed’s rate increases.

Oops! LIBOR spikes again … ahead of The Fed’s rate hike.

britney-spears-oops-i-did-it-again-video-2000-billboard-650

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.