fed minutes, 2018-11-08
Participants cited several potential benefits of targeting the OBFR rather than the EFFR: The larger volume of transactions and greater variety of lenders underlying the OBFR could make that rate a broader and more robust indicator of banks' overnight funding costs, the OBFR could become an even better indicator after the potential incorporation of data on onshore wholesale deposits, and the similarity of the OBFR and the EFFR suggested that transitioning to the OBFR would not require significant changes in the way the Committee conducted and communicated monetary policy.
Sentiment: neutral
Topic: mp_interest_rate