Assessing Yellen's Warning That Markets Pose a Threat to Economy

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  • Inside the wealth effect and what happens when IPOs dry up
  • Bear markets usually come about nine months before recessions

Former Yellen Adviser Says Recession a ‘Live Possibility’

Federal Reserve Chair Janet Yellen told Congress Wednesday that weakening stock prices pose a risk to the economy, indicating to investors a more gradual approach to rates. But how should everyone else feel with stocks down 10 percent in a year?

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