Fed Chair Powell Warns Stock Prices Seem ‘Fairly Highly Valued’

Federal Reserve Chair Jerome Powell stated that asset prices, including stocks and other risk instruments, are currently elevated. Speaking in Providence, Rhode Island, he noted that while the Fed monitors overall financial conditions and the impact of its policies, many measures indicate that equity prices are “fairly highly valued.” Ahead of last week’s policy meetings, markets rallied on expectations of an interest rate cut, and stocks continued climbing afterward. Powell emphasized that despite high valuations, this does not signal elevated financial stability risks. Following his remarks, major stock averages dipped, trading lower across the board.