Sharma: Fed Hikes in Dec. and Twice Each in 2017, 2018

The video discusses the outlook for monetary policy, including expected rate hikes in 2017 and 2018, and their impact on the dollar. It highlights the market's focus on the overall path of interest rates rather than specific rate changes. The video also examines the policies of global central banks like the ECB, Bank of Japan, and Bank of England, and their influence on the dollar. Additionally, it analyzes the dynamics between the euro and sterling, considering political uncertainties and historical monetary policy divergences.

What is the market's primary focus regarding interest rates according to the transcript?

• The strength of the US dollar

• The exact timing of rate hikes

• The overall path of interest rates

• The impact of elections on rates

What did the FOMC comment on regarding neutral interest rates?

• They will remain unchanged

• They are irrelevant to current policy

• They have been reduced below 3%

• They are expected to increase significantly

Which central bank is mentioned as being on a new course?

• Bank of England

• Bank of Japan

• European Central Bank

• Federal Reserve

What historical event is compared to the current Euro-Sterling dynamics?

• The 2008 financial crisis

• The 2012 Eurozone crisis

• The 2007-2008 surge in Euro-Sterling

• The Brexit referendum

What political events are contributing to uncertainty in Europe?

• Trade negotiations with China

• US presidential elections

• Elections in France, Netherlands, and Germany

• Brexit negotiations