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Powell Breaks Out the ‘Froth’ Word When Asked About Markets

  • Powell said asset prices are high when asked about GameStop
  • Monetary policy is a contributing factor, but not the only one
Bloomberg business news
WATCH: Federal Reserve Chairman Jerome Powell leaves rates unchanged and says the U.S. economic recovery has been uneven.(Source: Bloomberg)
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Parts of the markets “are a bit frothy, and that’s a fact,” says Jerome Powell. While he didn’t specify which, you don’t have to look too far for candidates.

The Federal Reserve chairman answered “some of the asset prices are high” when asked if things like GameStop Corp.’s and dog-affiliated joke cryptocurrency Dogecoin’s supercharged rallies created threats to financial stability. Powell said asset prices were a factor in how the central bank assess stability, but not the only one.