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 meant by a 'knee jerk reaction' in the context of market responses to Jerome Powell's appointment?

What is the market's expectation regarding Jerome Powell's appointment and its impact on interest rates?