Yellen stops short of saying markets are in a bubble

janet yellen

Outgoing Federal Reserve Chair Janet Yellen said U.S. stocks and commercial real estate charges are on the high side but stopped short of saying the markets are in a bubble.

“Well, I don’t want to say too high. But I do want to say high,” Yellen said on CBS’s “Sunday Morning” in an interview recorded Friday as she prepared to leave the central bank. “Price-earnings ratios are near the high end of their historical ranges.”

Commercial real estate prices are now “quite high relative to rents,” Yellen said. “Now, is that a bubble or is it too high? And there it’s very hard to tell. But it is a source of some concern that asset valuations are so high.”

Yellen, 71, stepped down as Fed leader on Saturday after one term after President Donald Trump opted to replace her with Republican Jerome Powell, who’s been a Fed governor since 2012.

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