Instead, I will focus on the questions surrounding the choice of target and the choice of instruments. The debate is, unsurprisingly, more advanced here in the U.S. than in Europe, given the stronger recovery and policy normalisation already under way. Logically, this raises questions about the future use of unconventional instruments and the efficiency of policy regimes to deal with a possible future recession.
[4] At the other end of the spectrum, the Swiss working group has found that a term RFR is not feasible given the low level of activity in derivatives referencing the Swiss franc RFR. [5] While the development of term RFRs is desirable, it is not yet clear that they will be sufficiently robust.