Fed Chair Yellen Believes Stocks Are Expensive

Janet Yellen, Federal Reserve Chair and one of the most influential people in the financial word, believes stock and bonds are priced at high levels. “I would highlight that equity market valuations at this point generally are quite high,” said Yellen. She also said equities aren’t as high as bond yields are low, in comparison. Bond yields “could see a sharp jump” after the Fed raises rates (likely sometime this year). Some investors are concerned the market will react strongly negative when the Fed finally does go through with a rate hike, especially if the central bank chooses to raise rates too quickly. The negative impact to the market is one (of several) reasons why Yellen and the Fed are so cautious about upping the benchmark rate. Regardless, when the Fed chief says stocks are expensive, you can bet investors are paying attention. (VIEW LINK)

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.