U.S. Growth Weakens After Fed Leadership Changes, History Shows

If history is any guide, Jerome Powell’s first years as Federal Reserve chairman could be accompanied by slower economic growth, according to new analysis from the central bank.

Of the seven Fed transitions since World War II, five were accompanied by slower growth in the three years following the appointment than the period before the change, according to an analysis released Monday by the St. Louis Fed. For the four most recent Fed leaders, the annualized GDP growth four years after transitions was 1.9 percentage points lower.