Some Fed Members Are Getting Worried About Stock Valuations. Here's What The Charts Show
- Some Fed officials see equity prices as ‘quite high’
- A range of metrics shows varying results on valuations
The Fed’s Communication Challenge on the Balance Sheet
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How high is too high? Not for the first time, Federal Reserve officials have injected themselves into the debate on stock valuations, pointing out lofty U.S. equity markets in the minutes of their March gathering.
“Some participants viewed equity prices as quite high relative to standard valuation measures,” according to minutes of the discussions released Wednesday. “Some measures of valuations, such as price-to-earnings ratios, rose further above historical norms," the central bank noted.