Fed’s Williams Unveils New Initiative on Reference Rates, According to Reuters

By Michael S. Derby

NEW YORK – Federal Reserve Bank of New York President John Williams announced the launch of a new panel aimed at discussing reference rates used in financial market benchmarks.

Williams introduced the Reference Rate Use Committee, which will convene various market participants to enhance the integrity, efficiency, and resilience of interest rate benchmarks, including those published by the New York Fed. He mentioned that the group’s inaugural meeting is scheduled for next month.

In a separate statement, the bank revealed that the panel will address significant issues concerning reference rates, including their evolving usage and changes within the markets that support them. The committee aims to establish best practices related to reference rate usage.

The deputy chief risk officer of Morgan Stanley will serve as the committee’s first chair. He emphasized the importance of collaboration between the financial industry and public sector to ensure the sustainable use of reference rates.