US Fed acknowledges worries over stock market bubble
‘The US Federal Reserve is concerned about a new “bubble” on the market, similar to the one that caused the financial crisis of 2008, said Fed Chair Janet Yellen.
“Of course we are worried that bubbles will form in the economy, and we routinely monitor asset valuations, while nobody can know for sure what type of valuation represents a bubble,” said Yellen at the news conference after the meeting of the regulator.
However, the Fed decided against raising interest rates despite the concern, holding the rate between 0.25 percent and 0.5 percent. Three officials voted against the decision – the biggest dissent since December 2014.’
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