dry powder noun3 •A powder found in a fire extinguisher that is expelled to smother the fire (in contrast with liquid types of extinguisher). •Cash (or cash-like securities) kept in reserve in case of need.Private equity firms were sitting on more than $1 trillion in dry powder at the end of 2011. •A powder found in an inhaler that delivers a bronchodilator for antiasthmatic or antiemphysemic purposes (indications). formsdry powders