The mother is killed and the baby survives, but with an abnormality. He is perceived as a monster by his father who immediately abandons him to grandparents who live in the country where they can keep the boy hidden in their basement. This was his beginning in life. When we meet Powder next, his grandparents have died, he is discovered by authorities, and moved to an institution. As the story unfolds, we get hints that this is not simply a historical drama.
Powder is the victim of a super-traumatic birth.
And he says he remembers it. But that isn't all he remembers. He remembers all the books he has ever read, reads minds and knows what people are thinking. Powder facilitates the healing of broken relationships. However, none of this matters.