Northern Trust chief economist, Carl R. Tannenbaum believes the US Federal Reserve may end quantitative easing by lifting interest rates early next month.
But Tannenbaum, who has been visiting Australia, told Super Review he believed it was likely to be at least another six months before the US Fed would raise rates for a second time.
Tannenbaum, who served on the Federal Reserve for four years before joining Northern Trust, said that predicted moves by the Federal Reserve to lift rates earlier this year had been constrained by uncertainty with respect to China and Greece.
However, he said that any lift in interest rates next month would come with a message that further rises would be very gradual.
Tannenbaum said that a gradual approach held out the best hope for sustaining economic expansion without disrupting markets.
While the Financial Advice Association Australia said it supports a performance testing regime “in principle”, it holds reservations about expanding this scope to retirement products.
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
Senator Jane Hume will join the speaker lineup at the inaugural Australian Wealth Management Summit.
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