Day 1 After Fed Liftoff Shows Move Catapults Money Market Rates

December 17, 2015 12:39 PM

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After the Federal Reserve raised its benchmark interest rate for the first time in almost a decade, the Day 1 follow-through in money markets shows the policy move looks to be working: The overnight U.S. dollar London interbank offered rate just fixed at the highest since 2009.

Libor, as the rate is called which signals where banks think they can borrow from each other, was posted by Intercontinental Exchange Inc. at 6:45 a.m. in New York at 0.3614 percent, the highest since March 31, 2009. The rate is up from 0.1315 percent a week earlier at 0.0852 percent at the end of l...

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