Outgoing Federal Reserve Chair Jesse Yellen said U. S. stocks and shares and commercial real estate prices are usually elevated but stopped short of stating those markets are in a bubble.
“ Well, I don’ big t want to say too high. But I actually do want to say high, ” Yellen said on CBS’ s “ Sunday Morning” in an interview documented Friday as she prepared to keep the central bank. “ Price-earnings ratios are near the high end of the historical ranges. ”
Commercial real estate property prices are now “ quite higher relative to rents, ” Yellen stated. “ Now, is that a bubble or is it too high? And generally there it’ s very hard to tell. However it is a source of some concern that will asset valuations are so high. ”
Yellen, 71, walked down as Fed chief upon Saturday after one term, right after President Donald Trump opted to change her with Republican Jerome Powell, who’ s been a Given governor since 2012.
“ I actually made it clear that I would be prepared to serve, so yes, I do really feel a sense of disappointment” about not becoming renominated, Yellen said. The only lady to serve as the head of the Oughout. S. central bank described the girl work at the Fed as “ the core of my lifetime. ” Yellen said she’ t supportive of former investment bank Powell, 64, whom she called “ thoughtful, balanced, and focused on public service. ”
The particular financial system is now “ much better capitalized” and the banking system “ a lot more resilient” than they were entering a global financial crisis a decade ago, Yellen said.
“ What we look at is usually, if stock prices or resource prices more generally were to drop, what would that mean for the economic climate as a whole? ” Yellen said. “ And I think our overall judgment is the fact that, if there were to be a decline within asset valuations, it would not harm unduly the core of our economic climate. ”
Yellen’ t final act at the Fed had been to hit one of the largest U. S i9000. banks, Wells Fargo & Co. , with an unusual ban on growth that comes after the San Francisco-based lender’ ersus pattern of consumer abuses plus compliance lapses.
In the interview that shown Sunday, she warned that it might be a “ grave mistake” to move back the regulations put on banking institutions after the previous economic collapse.
The current U. S. financial expansion is now approaching nine yrs and is the third longest in period since 1945, according to the National Agency of Economic Research. Yellen stated the economy can continue to grow. “ Yes, it can keep going, ” the girl said. “ Recoveries don’ to die of old age. ”