Yellen Fed Ramps Up Attention Over ‘Somewhat Rich’ Asset Prices
- Stocks drop after Yellen calls attention to elevated prices
- Fischer says equities don’t simply reflect economic outlook
Federal Reserve Chair Janet Yellen comments on current asset valuations and the future path of Fed policy with former World Bank economist Lord Nicholas Stern at the British Academy in London. (Source: Bloomberg)
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It’s not an alarm bell, but Federal Reserve officials are suddenly talking more about rising asset prices.
Fed Chair Janet Yellen, Vice Chair Stanley Fischer and San Francisco Fed President John Williams on Tuesday all acknowledged that valuations in equity and other asset markets had risen noticeably in recent weeks.