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US rates may rise in December, but only gradually thereafter
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.
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