Bubble Blowing to Continue So Long as Yellen Isn’t Raising Rates
Janet Yellen, chair of the U.S. Federal Reserve, listens to a question during a discussion with Christine Lagarde, managing director of the International Monetary Fund (IMF), not pictured, at an Institute for New Economic Thinking conference at the IMF headquarters in Washington, D.C. on May 6. Photographer: Andrew Harrer/Bloomberg
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Janet Yellen will have to do more than talk about potential asset market bubbles if she is to pop any.
Days after Federal Reserve Chair Yellen’s May 6 observation that stock valuations are “quite high,” Citigroup Inc. strategists led by Robert Buckland looked around the world at what central banks have done in the past to rein in financial market excesses.