The truth oftentimes hurts.
And the truth on Wall Street at the moment is that new Fed chair Jerome Powell will be no friend of the stock market. Three days into the Powell era at the Fed, the Dow has notched a total return of negative 5% thanks to a stunning 1,175 point drubbing on Monday. That has Powell one level above Eugene Meyer as worst Fed chair when it comes to the Dow's performance in history, according to LPL Financial.
Meyer served as Fed chair (or governor as it was called) at the start of the Great Depression, serving from Sept. 30, 1930 to May 10, 1933. Under his watch, the Dow crashed a mind-boggling 65% on a total return basis.
To be sure, Powell has a long way to go to catch the Dow's performance under other Fed chairs. Several quick stats from LPL Financial of note:
- Over Janet Yellen's four year tenure as Fed chair, the Dow gained 63%. This ranks sixth out of the previous 15 Fed chairs.
- The best total return under a Fed chair is the 312% Dow gain under Alan Greenspan.
"Weakness after a new Fed chair is quite normal and in fact, the Dow tends to slide more than 15% on average within the first six months of new Fed leadership," reckons LPL Financial's Ryan Detrick. "But the good news is that the Dow has rebounded more than 20% on average a year after those six-month lows are made."
So who is Jerome Powell? Watch below for some fast facts.