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ACTIONS OF FEDERAL RESERVE Powell’s 8-Minute Speech Erases $78 Billion From Richest Americans Original article: https://www.bloomberg.com/news/articles/2022-08-26/powell-s-jackson-hole-speech-erases-78-billion-from-richest-americans-fortunes Peter Burgess COMMENTARY Peter Burgess | ||
Powell’s 8-Minute Speech Erases $78 Billion From Richest Americans
By Brian Chappatta @BChappatta
August 26, 2022 at 5:34 PM EDT
In the span of just eight minutes, Federal Reserve Chair Jerome Powell sparked a market rout that slashed the fortunes of America’s richest people by $78 billion.
Elon Musk’s saw $5.5 billion erased from his wealth. Jeff Bezos lost $6.8 billion, the most of anyone on the Bloomberg Billionaires Index. The fortunes of Bill Gates and Warren Buffett declined by $2.2 billion and $2.7 billion, respectively, while Sergey Brin’s was knocked below $100 billion.
Fading Fortunes
US billionaires see wealth plunge anew after Powell's speech sinks stocks
Source: Bloomberg Billionaires Index
Powell used his speech at the Kansas City Fed’s annual policy forum in Jackson Hole, Wyoming, to reiterate that the US central bank will keep raising interest rates and probably leave them elevated for a while to reduce inflation. He was seen as pushing back on a recent rally in US stocks that was fueled by speculation that policy makers would soon reverse course from their aggressive monetary tightening.
The S&P 500 tumbled 3.4%, its worst day since mid-June. The tech-heavy Nasdaq 100, which counts Microsoft Corp., Amazon.com Inc., Tesla Inc. and Alphabet Inc. among its biggest components, plunged more than 4%.
Few billionaire fortunes have been spared this year. The world’s 500 richest people lost $1.4 trillion in the first half of 2022, the steepest six-month drop ever for the wealthiest people on the planet. But US stocks in July posted their strongest monthly advance since November 2020, leading investors to wager that the worst of the market rout was over.
Instead, Powell’s speech served as a reminder that valuations of giant technology companies remain high by historical standards after an unprecedented run-up during the Covid-19 pandemic when in
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In this article
SPX
S&P 500
4,057.66USD-141.46-3.37%
MSFT
MICROSOFT CORP
268.09USD-10.76-3.86%
AMZN
AMAZON.COM INC
130.75USD-6.53-4.76%
TSLA
TESLA INC
288.09USD-7.98-2.70%
GOOGL
ALPHABET INC-A
110.34USD-6.31-5.41%
Open
terest rates were pinned near zero.
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| The text being discussed is available at | https://www.bloomberg.com/news/articles/2022-08-26/powell-s-jackson-hole-speech-erases-78-billion-from-richest-americans-fortunes and |