The Powell Put
Overview
The stock market’s dramatic recovery so far in 2019, after a dismal fourth quarter of 2018, has left many casual market observers wondering “What changed”? U.S. economic data continues to reflect a modest slowdown, Europe struggles with anemic growth and Brexit uncertainty, and China grapples with a slowing growth rate and enormous debt. The global economic growth continues to look a bit shaky. But some observers see Chairman Jay Powell’s softer stance when describing the Fed’s monetary policy to the press as the phenomenon of the “Powell Put” that gives investors comfort.