Investors in the US stock market on Friday suffered huge losses as the chairman of the US Federal Reserve, Jerome Powell indicated an aggressive hike in the interest rates in near future as a measure to tame inflation rates in the country.
Speaking at the Jackson Hole symposium, conducted by the Federal Reserve Bank of Kansas City, Powell stated that it was an important move that would restore price stability in the economy.
He also made it known that the entire process of taming the inflation rate in the country will require the use of various economic tools by the Federal Reserve of the United States and consume a lot of time as well.
REACTION OF THE US CAPITAL MARKET TO THE SPEECH
The US Stock Market did not respond positively to the comments made by Jerome Powell as major Stock Exchanges in the US capital markets such as the Dow Jones Industrial Average Index, Nasdaq composite index, and S&P 500 index declined by 3 to 4% on Friday.
A good number of multi-billionaire investors in the US capital markets lost nearly 1.2 trillion dollars as a result of the speech by the US Federal Reserve chief.
The Dow Jones Industrial Average Index lost over 1000 points on Friday to close the market at 32283.40. Nasdaq composite index of Nasdaq exchange also lost 497.56 (-3.94%) to close markets at 12141.71. While S&P 500 index declined by 3.37% on Friday to close the market at 4057.66.
The parent company of Google Alphabet Inc saw its shares tumble by 5.4% on Friday to close the markets at 111.30 dollars per share.
The share value of Investment giant Berkshire Hathaway Inc owned by billionaire Warren Buffett also suffered huge losses on Friday as it declined by 2.66 percent.
ELON MUSK LOST 5.5 BILLION DOLLARS
The Richest man in the world and Chief executive officer of Tesla Motors Company, Elon Musk also suffered a huge loss of 5.5 billion dollars in his wealth on Friday. Head of Amazon, Jeff Bezos lost almost 6.8 billion dollars on the Bloomberg billionaire index. While Microsoft founder Bill Gates saw his wealth decline by 2.2 billion.
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