CNBC’s Steve Liesman: “Every day it seems the stock market goes up triple digits… is it now, or will it soon become a worry for the central bank that valuations are this high?”
Yellen’s response appeared very similar to Bernanke’s “contained” moment:
‘”The stock market has gone up a great deal this year,” and asset valuations are “elevated.”
“We see ratios in the high end of historical ranges,” but “Economists are not great at knowing what the right valuations are…we don’t have a terrific track record.”
“Low interest rates support higher valuations.”
”The risks in the global economy look more balanced than they have in recent years.”
”There is nothing flashing red there or possibly even orange,” on asset valuations…
So this is not even flashing orange?
