Chair Powell "Stock market valuation already quite high"

JH Kim

Summary

Jerome Powell, Chair of the U.S. Federal Reserve, said in a speech held in Warwick, Rhode Island, that stock market valuation is already quite high.
Powell's remarks were interpreted as reflecting concerns that the recent stock market strength may be a sign of overheating relative to fundamentals.
However, Powell did not mention any specific outlook for a correction or policy implications.

According to Walter Bloomberg, the economic breaking news channel, on the 23rd (local time), Jerome Powell, Chair of the U.S. Federal Reserve (Fed), said in a speech titled 'Economic Outlook' held in Warwick, Rhode Island, "stock market valuation is already at a considerably high level." Powell's remarks were interpreted as reflecting concerns that the recent stock market rally may be a sign of overheating relative to fundamentals. However, he did not mention any specific prospects for a correction or policy implications.