CNBC reported that the U.S. Federal Reserve announced Monday that an interest rate that banks around the world use as a benchmark for short-term borrowing will be phased out and eventually be replaced by June 2023.

"The Federal Reserve Board on Monday welcomed and supported the release of a proposal and supervisory statements that would enable a clear end date for U.S. Dollar (USD) LIBOR and would promote the safety and soundness of the financial system," the Fed said in its release. "The announcements today by regulators in the United States and United Kingdom and by the benchmark administrator for LIBOR together lay out a path forward in which banks should stop writing new USD LIBOR contracts by the end of 2021, while most legacy contracts will be able to mature before LIBOR stops." Contracts using LIBOR should wrap up by June 30, 2023, the directive added.