Nomura Expects Fed to Continue Gradual Tightening

The video discusses the potential impact of Jerome Powell as the new Fed chair, suggesting that his appointment may not significantly alter the trajectory of monetary policy. The US economy is performing well, with a tightening labor market, even before any fiscal stimulus from tax cuts. The video also covers market expectations of a December rate hike and suggests that reactions to Powell's appointment may be overestimated, with the consensus view likely prevailing.

What is the main reason for the expected continuation of the current monetary policy if Jerome Powell becomes the Fed chair?

• He has a different economic philosophy.

• He is already a Fed governor.

• He plans to implement drastic changes.

• He is not familiar with the current policies.

According to the transcript, what is the expected economic condition in the US before any fiscal stimulus?

• The economy is declining.

• The economy is stagnant.

• The economy is doing very well.

• The economy is struggling.

What does Morgan Stanley suggest about the market's reaction to Jerome Powell's potential appointment?

• Expect a market crash.

• Expect a knee-jerk reaction.

• Expect no reaction at all.

• Expect a significant market rally.

What is the expected action from the FOMC in December according to the transcript?

• An interest rate hike.

• A complete overhaul of monetary policy.

• A pause in interest rate changes.

• A decrease in interest rates.

What is the consensus opinion about the market's reaction to Jerome Powell's appointment?

• There will be a significant market shift.

• There will be a panic in the market.

• The market is well-discounted and stable.

• The market will experience a boom.