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The Fed's Toolkit for Controlling the Offshore Dollar System
The Eurodollar futures market, as it stands today, I believe is futures of the LIBOR, three-month dollar-nominated LIBOR. So will the transition from LIBor to SOFR put more of the offshore dollar system within the control and remit of the Federal Reserve? No. It doesn't really change the Fed's toolkit. It just changes the reference rate. And in fact, they wouldn't even spike at all because of all the centredial facilities.