Please click the link below to view Shane Oliver's most recent article in relation to the US economy, the Fed and interest rates.
Key points are:
- With the US economy on the mend, the focus will likely soon shift to when the Fed will start to raise interest rates. This could cause some volatility in shares
- A Fed rate hike is probably still a year away at this stage and history tells us that it's only when rates reach onerous level that they become a real threat to share markets.
- Rate increases are further away in the Eurozone and Japan, which may still need further monetary easing.
- Steady progress towards eventual rate hikes in the US will further relieve pressure on the $A over time
