Look Who it Was Random video

US Central Bank Raises Rates At Fastest Pace (w/ Christophe Ollari) | Expert View | Real Vision™

1,733 views · Published 12 July 2018 · 2:30 · Indexed 4 November 2026

Channel: Real Vision Presents · 2018 · News & Politics

Watch on YouTube

The central banks of Europe, Japan and the U.S. were converging their policy through 2017. Christophe Ollari of Ollari Consulting argues that this year’s change at the Federal Reserve marks a highly significant turning point. Not only is the Fed moving in an opposite direction of other central banks, but their policy goals also set them in opposition to the Trump administration.

The only financial TV that matters. Start a 14-day free trial on Real Vision to watch more interviews like this: https://rvtv.io/2LeClIN
Watch more Real Vision™ videos: http://po.st/RealVisionVideos
Subscribe to Real Vision™ on YouTube: http://po.st/RealVisionSubscribe

About Expert View: 
The Expert  View covers discussions on the topics that really matter, right now. Expert guests answer a series of questions on thematic topics that investors most want to know about, offering informative, actionable, and relevant market insight. It’s like being in the same room as an expert investor and being able to ask all the questions you really want answers to.

About Real Vision™:
Real Vision™ is the destination for the world’s most successful investors to share their thoughts about what’s happening in today's markets. Think: TED Talks for Finance.  On Real Vision™ you get exclusive access to watch the most successful investors, hedge fund managers and traders who share their frank and in-depth investment insights with no agenda, hype or bias. Make smart investment decisions and grow your portfolio with original content brought to you by the biggest names in finance, who get to say what they really think on Real Vision™.

Connect with Real Vision™ Online:
Linkedin: https://rvtv.io/2xbskqx 
Twitter: https://rvtv.io/2p5PrhJ

US Central Bank Raises Rates At Fastest Pace (w/ Christophe Ollari) | Expert View | Real Vision™
https://www.youtube.com/c/RealVisionTelevision

Transcript:
And Powell said, no. We are going to keep on hiking. Because he knew that he had to be the cornerstone of the setup. And that's when the dollar just exploded. And it's not only because there was a shot positioning. The best case scenario for a currency is when you have a fiscal expansion, and you have a central bank who just is telling everyone the inflation genie will not go out of the bottle. That's Reagan and Volcker in '82 to '86. And this is what [INAUDIBLE] qualified as his best trade ever in 1990 when he went long of the Deutschmark just before the reunification, when everybody thought the Deutschmark would collapse. And the Deutschmark rallied 36%. So he has changed, in fact, the story of the convergence. Because suddenly he was the only one properly hiking. Because before we are talking about the convergence. But there was no tightening. The divergence properly started in 2018 for one main reason. In fact, there was no normalization before. The Fed was hiking rates, but they were very dovish hikes. They were not tightening the financial conditions. So it was, again, a very beautiful normalization. The story changed in 2018 because Jerome Powell started the proper tightening cycle. At that stage, at the same time, Europe, Japan, the UK had to face the consequences of 2017, which is the strong currencies biting their economy. And we had, at that stage, a collapse of inflation data in Europe, a collapse of the growth momentum. The same in Japan. And the same in the UK. So basically, as a consequence of the convergence of 2017, which happened through the FX, we had in 2018 a divergence which was a consequence of the 2017 move, plus Powell saying, now I'm going to start to tighten properly.

More from this channel