Ken Fisher on Jerome Powell’s Reappointment and What It Means for Markets

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher discusses how Jerome Powell’s reappointment as Fed Chair will affect stocks. According to Ken, the role tends to dominate the person more than the person defines the role. While Ken believes all central bankers make plenty of mistakes, most remain fairly “vanilla” throughout their tenure. Ken says the effect of Powell’s reappointment is likely to be relatively benign for stock markets.

The uncertainty associated with a new Fed head often stokes some investor concern, while the reappointment of an incumbent tends to bring comfort. While Powell does bring experience, it is inevitable that he will make mistakes—like any other central banker. However, based on the nature of the role, Ken says you shouldn’t expect anything too great nor too bad to happen under his watch.