Down With The Ship: Meet Jay Powell, the New Fed Chairman

by | Feb 17, 2018 | Newsletter | 11 comments

Paul Volcker began his term as chairman of the Federal Reserve Board of Governors in August of 1979. In October, the S&P 500 index dropped 11% on its way to a 20% drop in 1980.

Alan Greenspan was sworn in as Fed chairman in August 1987. On October 19, 1987, the markets suffered through “Black Monday,” a devastating sell-off that saw the Dow Jones lose a record 22.6% in a single day.

Ben Bernanke became chairman in February of 2006. In May of that year, the markets stumbled through a 7.8% sell-off on the rocky road to the Bear Stearns and Lehman Brothers meltdown.

Janet Yellen began her term as Fed chair in February, 2013, it was the midst of a market sell-off that ultimately saw the S&P drop 5.4%. The sell-off resumed in September, with a further 9% drop on an intraday basis from mid-September to mid-October.

For decades now, it has been an iron-clad rule: Every incoming Fed chair will face market turbulence or a major crisis shortly after taking office. But, to use the parlance of the internet meme generation, Yellen’s newly-appointed successor at the helm of the Fed, Jerome “Jay” Powell, may have been heard to remark “hold my beer” before assuming the chair…

Find out more about the recent market turmoil and the man who has just taken the helm of the Fed in this week’s Corbett Report Subscriber newsletter.

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