President Donald Trump looks on as his nominee for the chairman of the Federal Reserve Jerome Powell takes to the podium during a press event from the Rose Garden at the White House, November 2, 2017 in Washington, DC.
President Donald Trump may not like the Fed’s interest rate policies, although the stock market doesn’t seem to mind — in addition to in which has been outperforming during Fed Chairman Jerome Powell’s first six months in office when compared to the early days of additional Fed chairs.
The Dow Jones industrial average was up 4.6 percent from the six months since Feb. 5 when Powell took office. On average, the Dow has gained 0.9 percent from the first six months of a completely new Fed chair’s term, when looking at the track records of Powell in addition to the last 15 Fed chairs before him going back to 1914, according to CFRA.
The worst was the 26.8 percent decline for Alan Greenspan, who took office in August 1987. His first six months included the stock market crash of 1987. Former Fed Chair Janet Yellen’s early days topped Powell, as she saw a 7.3 percent gain from the Dow from the first six months, while former Fed Chair Ben Bernanke lagged both although still beat the average, that has a 1.6 percent gain.
“So far, so Great” for Powell, said Sam Stovall, chief investment strategist at CFRA. “There have been many times in which’s been very, very Great or very, very bad. Occasionally you get someone who can be right from the middle, in addition to Powell can be one of those middle liners, who has inherited pretty Great economic growth.”
Powell’s Fed has followed the course of the Yellen Fed as a quarterly hiker, in addition to he has raised interest rates twice so far, in March in addition to June. There are two more rate hikes expected in which year, in addition to the market can be so far taking them in stride.
Trump recently criticized the Fed for raising interest rates, although he also called Powell a “Great man” in addition to said he could not tell the central bank what to do. “in which’s been so gradual, so transparent, in which’s taken nobody by surprise,” Stovall said. He said for today he sees little chance of a hyperbolic rate move as long as the consumer cost index remains mild .
The Fed chair with the best performing stock market was the 20.9 percent gain during the short term of G. William Miller, who was Fed chair just before Paul Volcker. Volcker’s first six months saw a 3.9 percent gain even though he was dealing with CPI inflation of over 10 percent.