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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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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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