Libor boost as Fed casts doubts on New York

Libor boost as Fed casts doubts on New York

By Krishna Guha in Washington

Published: May 4 2008 23:19 | Last updated: May 4 2008 23:19

The Federal Reserve is sceptical about making New York rather than London the global centre for setting benchmark borrowing rates, making it likely that London will see off challenges.

A push is under way in New York to create a new benchmark for dollar-denominated loans to rival the London interbank offered rate, better known as Libor.