Yellen Says Asset Values Aren’t Out of Line With Past Norms

Federal Reserve Chair Janet Yellen said stock and bond valuations aren’t out of line with historical norms even as some prices seem on the “high side.”

Yellen told lawmakers in a second day of semi-annual testimony that Fed officials are watching for excessive risk-taking, mindful that holding interest rates low can prompt a “reach for yield.” She said she considers safeguarding financial stability a Fed mandate, reserved the right to aid failing broker-dealers and called a proposal to require the Fed to adopt a rule for monetary policy a “grave mistake.”