8 minutes of the Fed Chairman’s speech cost the richest Americans $ 78 billion

8 minutes of the Fed Chairman's speech cost the richest Americans $78 billion - Photo 1.

Federal Reserve Chairman Jerome Powell – Photo: REUTERS

Billionaire Elon Musk has seen $5.5 billion erased from his fortune. Billionaire Jeff Bezos lost $6.8 billion, the most in Bloomberg’s list of billionaires.

The fortunes of billionaires Bill Gates and Warren Buffett fell by $2.2 billion and $2.7 billion, respectively, while billionaire Sergey Brin’s fortune was lowered below $100 billion, according to News Agency. Bloomberg.

Mr. Powell, speaking at the Fed’s annual policy forum in Jackson Hole, Wyoming, reiterated that the U.S. central bank will continue to raise interest rates and will likely raise rates for a while to reduce inflation. .

The speech dampened recent gains in US stocks, as investors speculated it would lead to higher interest rates, slower growth and a weakening labor market.

The S&P 500 index fell 3.4 percent on Aug. 26, its worst day since mid-June. The Nasdaq 100 index of tech companies, including Microsoft, Amazon, Tesla and Alphabet, fell more than 4%. .

Very little luck for billionaires in 2022. The world’s 500 richest people lost $1.4 trillion in the first half of 2022. This is the steepest decline in six months, so far for the richest people in the world. richest man on the planet.

US stocks in July posted their strongest monthly gain since November 2020, prompting investors to bet that the worst of the market is over.

But Mr. Powell’s speech served as a reminder that tech giants are still valued at a premium – by historic standards after an unprecedented price spike during the COVID-19 pandemic when interest rates became more volatile. close to 0.

Asian stock markets took on Federal Reserve Chairman Jerome Powell’s message with the consequences: Futures contracts fell nearly 2% for Japan and 1.5% for Australia after the S&P index 500 dropped 3.4%.

The slide was sparked by Mr. Powell’s rejection of the notion that the monetary tightening trajectory could soon be overcome.

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