economy
Stock investors fared very well under Powell. Bond investors, not so much
Investors are starting to draw conclusions on what Powell's tenure has meant for Wall Street.
TL;DR
- The Dow Jones Industrial Average grew nearly 9% annually under Powell's leadership.
- The S&P 500 saw an annual rally of 14.7% during Powell's tenure.
- Bonds performed poorly, with the Bloomberg US Aggregate Bond Index returning under 2% annually.
- High inflation post-Covid led the Fed to increase benchmark lending rates.
- Powell's press conferences were seen as positive for market transparency, helping investors distinguish between noise and news.
- Powell's background as an investment banker may have favored stock market gains.
- Some critics argue his 'easy money' policies contributed to inflation, forcing a later hawkish turn.
- Despite recent inflation challenges, overall inflation during Powell's tenure was below the historical average.