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Yellen: no asset bubbles – not in equity markets, not in the housing market
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Yellen: no asset bubbles – not in equity markets, not in the housing market# Stock
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There are no asset bubbles – not in equity markets, not in the housing
market.
That’s according to Federal Reserve chair nominee Janet Yellen, who was
asked about bubbles in her confirmation hearing before the Senate Banking
Committee Thursday.
The Wall Street Journal reports that Yellen, citing valuations, told
lawmakers, “Stock prices have risen pretty robustly…[but] you would not
see stock prices in territory that suggest…bubble-like conditions.”
Yellen also deconstructed the housing bubble argument saying, for example,
that private investors are buying homes in some of the markets that were
hardest hit, which is “logical” and something the Fed is watching.
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