U.S. regulators are pushing ahead with reforms to financial market benchmarks, working with the private sector to develop benchmarks for interest rate markets that could serve as alternatives to Libor. On Jan. 20, Federal Reserve Governor Jerome Powell disclosed that the Fed has convened an "alternative reference rate committee" comprised of large global dealers to help promote alternatives to U.S. dollar Libor. On Jan. 21, the Financial Stability Oversight Council, a group that brings together U.S. regulators, discussed the current state of benchmark reforms at an open meeting chaired by Treasury Secretary Jack Lew. The group discussed the formation of the alternative reference rate committee and the challenges of transitioning away from Libor. A staffer briefing the group indicated the need for providing market participants with a choice among alternatives and noted that the alternative reference rate committee will work on a plan to develop liquidity in the markets underlying those alternatives.
