How Powell wiped out $78 billion from Musk and Bezos fortunes in 8 minutes

In period only eight minutesFederal Reserve Chairman Jerome Powell caused a market crash that reduced the fortunes of America’s richest people by $78 billion.

Elon Musk He saw $5.5 billion written off his fortune; Jeff Bezos He lost $6.8 billion, the biggest loss of anyone on the Bloomberg Billionaires Index. fortunes Bill Gates and Warren Buffett By $2.2 billion and $2.7 billion, respectively, while Sergey Brin fell to less than $100 billion.

Powell used his Jackson Hole speech to reiterate that the US central bank will continue to raise interest rates and may leave them elevated for a while. To curb inflation.

It was seen as a reflection of the recent rally in US stocks fueled by speculation that policy makers will soon reverse course on their strong monetary tightening.

The S&P 500 fell 3.4 percent, His worst day since mid-June. The Nasdaq, which lists Microsoft, Amazon, Tesla and Alphabet among its largest components, fell more than 4 percent.

Few fortunes worth millions of dollars have been saved this year. The 500 richest people in the world lost $1.4 trillion in the first half of 2022the biggest drop in six months for the world’s richest, but US stocks posted their biggest monthly gain since November 2020 in July, prompting investors to bet on the worst of the market slump.

Instead, Powell’s speech was a reminder of that Technology company reviews It remains high by historical standards after an unprecedented spike during the COVID pandemic, when interest rates were hovering near zero.

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