“if libor is a composite of the rates of central banks around the world, why would it parallel the ffr?”
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i believe LIBOR is set by the BBA and is not a composite rates from around the globe.

i have not looked at LIBOR beyond ’99, but since then the 6 month LIBOR has mirrored the FFR. and i believe there is evidence that the 3 month LIBOR movement slightly pre-dates that of the FFR.