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Yellen, Powell Wary of Financial Froth While They Push Stimulus

Feb. 22, 2021, 6:30 PM

U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell appear wary of signs of froth in financial markets, even as they press ahead with economic stimulus measures that are elevating the euphoria.

There “may be sectors where we should be very careful,” Yellen told CNBC television last week, when asked about possible speculative sizzle.

The remarks came a day after publication of minutes of the Fed’s Jan. 26-27 policy meeting at which staff characterized the risks to financial stability as notable – an assessment Powell shares, according to a central bank official familiar with the matter.


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