Stock investors fared very well under Powell. Bond investors, not so much
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- Jerome Powell guided the Fed since 2018, overseeing a 14.7% annual rise in the S&P 500, the third‑best performance for a Fed chair since 1970.
- Kevin Warsh cleared the Senate Banking Committee on Wednesday, positioning him to succeed Powell next month.
- CFRA Research reported the Dow Jones Industrial Average climbed nearly 9% per year under Powell, outpacing the historical average of chairs.
- Bloomberg US Aggregate Bond Index delivered just under 2% annual return during Powell’s tenure, far below the 6.5% long‑run average since the 1970s.
- Art Hogan highlighted that Powell’s post‑decision press conferences helped traders separate "noise from the news," improving market transparency.
Why it matters: Equity investors reap a 14.7% annual gain in the S&P 500, boosting portfolio wealth, while bond investors see under‑2% returns, eroding fixed‑income yields and pressuring pension fund cash flows.
