8 minutes of the Fed Chairman’s speech cost the richest Americans $ 78 billion
U.S. stocks in July posted their strongest monthly gains since November 2020, leading investors to bet that the market’s worst period was over.
But Powell’s speech served as a reminder that tech giants are still priced at high levels — by historical standards after an unprecedented rally during the COVID-19 pandemic when interest rates returned to near zero.
Asian stock markets took on Federal Reserve Chairman Jerome Powell’s message with consequences: Futures fell nearly 2% for Japan and 1.5% for Australia after the S&P 500 plunged 3.4%.
The slide was sparked by Powell’s rejection of the notion that the trajectory of monetary tightening could soon be rectified.
In just 8 minutes of speaking, US Federal Reserve Chairman Jerome Powell made the wealth of the richest Americans “evaporate” $ 78 billion.
Billionaire Elon Musk has seen $5.5 billion removed from his fortune. Billionaire Jeff Bezos lost $6.8 billion, the most on Bloomberg’s list of billionaires.