Fed Leadership Risk Looms Larger for S&P 500 at 7,175 Than Iran War

Uncertainty over Jerome Powell's Fed chair term ending May 15, 2026—despite the DOJ recently dropping its probe—is predicted to impact the S&P 500 more than the war in Iran. The index, up over 4% year-to-date near 7,175, could surge to new highs on a smooth transition preserving Fed independence or plunge on political interference and a forced exit. Emerging articles urge de-risking portfolios by trimming richly valued, high-volatility stocks and favoring low-volatility or dividend-paying names to brace for this 2026 wildcard.