The Federal Reserve has raised its key interest rate to between 0.5% and 0.75%, responding to a growing economy and a strengthening labor market. The increase is only the second since 2008, but the central bank has signaled that the pace will pick up in 2017. Bloomberg (12/14)
The US Chamber of Commerce is calling on President-elect Donald Trump to act immediately upon taking office to do away with the Labor Department's fiduciary rule, said Thomas Donohue, the Chamber's president and CEO. If allowed to take effect, the rule will "choke economic growth, increase frivolous litigation against financial…
President-elect Donald Trump may repeal the Labor Department's fiduciary rule, and that would be a good thing, this editorial argues. The rule's "best interest" clause is vague, and the threat of lawsuits for not acting in clients' best interests could stifle innovation, the editorial says. Quartz (12/11)
The Labor Department's fiduciary rule is one of several rules finalized during President Barack Obama's administration that could be ended, changed or delayed by President-elect Donald Trump's incoming administration. The new Labor secretary could stop the fiduciary rule by settling lawsuits against it, says Mark Calabria of the Cato Institute….
US District Judge Daniel Crabtree has denied a preliminary injunction to prevent the Labor Department from enforcing its fiduciary rule. Market Synergy Group, which develops fixed-indexed annuities and other insurance products, failed to show that the Labor Department had exceeded authority or had treated fixed-indexed annuities capriciously, the judge says….
Members of the Federal Reserve's governing board largely concluded that economic data support an interest-rate increase in the near future, according to recently released minutes of their November meeting. Several officials said rates would likely be raised at the Fed's December meeting. Bloomberg (11/23), U.S. News & World Report (11/23)
The principles underlying the Labor Department's new fiduciary rule could become routine practice in the financial-services industry, even if the administration of President-elect Donald Trump repeals the rule itself, industry experts say. Many major financial firms have incorporated the requirements into their procedures and the rule could become the de…
The Federal Reserve has voted 7-3 to leave interest rates unchanged, but growing support for an increase suggests one will come before year-end. "The committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence…
One of the most common misconceptions advisers have about the Labor Department's fiduciary rule is that it will not significantly affect their everyday business, writes Matt Matrisian of AssetMark. Confusion also surrounds the rule's grandfathering provision, as well as the use and effective dates of the best-interest contract exemption, he…
The Labor Department will start releasing guidance to help financial professionals comply with its fiduciary rule on a "rolling basis" this fall, said Timothy Hauser, chief operating officer of the department's Employee Benefits Security Administration. He said broker-dealers would be wise to submit questions to the department now. ThinkAdvisor (9/16)
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