The stock market has a 'funny way of testing new Fed chairs'
13 February 2018 at 21:46Markets tend to test new Federal Reserve chairs not long after they take over; Jerome Powell's first drubbing came especially quickly with last week's sharp reversal.- Markets tend to test new Federal Reserve chairs not long after they take over; Jerome Powell's first drubbing came especially quickly with last week's sharp reversal.
- The Dow Jones industrial average gained 63% under Janet Yellen's four-year tenure, the sixth best run of 15 Fed chairs, according to LPL Research.
- The best total return under a Fed chair is the 312% Dow gain under Alan Greenspan; but he was also the longest tenured Fed chair at 18.5 years, so his annualized return is only 8.0%.
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