Stocks in Powell's thrall can see a taper without much tantrum

Bulls can thank stagecraft of Jerome Powell, Federal Reserve chairman, who on Friday gave the strongest signal yet that the central bank will begin tapering its monthly bond purchases this year

Cut stimulus, and say goodbye to the stock market’s armor. That’s been the bet for a decade. Now the moment has come. But no signs of catastrophe have arisen.

Bulls can thank the stagecraft of Jerome Powell, the Federal Reserve chairman, who on Friday gave the strongest signal yet that the central bank will begin tapering its monthly bond purchases this year. Not only did the dreaded T-word fail to halt stocks’ steady climb, the S&P 500 Index posted its biggest gain in a month, and put in its second-best Jackson Hole week since 2014.

Powell did just enough to preserve the