- What seems at first sight like a big win for Powell is actually more of a 'Pyrrhic victory', and not only for him.
- On one hand, Powell is now free of the pressure to please his (political) masters. That's bad news for investors.
- On the other hand, Powell is getting a (professional) "watchdog" - Lael Brainard - that has a clear incentive to promote a divided Fed. That's bad news for investors too.
- We find it hard to call anyone a real winner, but it looks like we have a clear loser. Powell's second term is marking a new, tougher, ball-game for growth investing.
For further details see:
Powell's (Partial) Gain = Growth Investing Pain