Treasury Sec Jack Lew “Not Worried” about Stock Bubble

With stocks at all-time highs despite only tepid economic growth, there's little sign of a bubble forming in markets, Treasury Secretary Jack Lew told CNBC on Thursday.

"There's always going to be concern not to get to a point where we have the seeds of a future crisis," Lew said. "The analysis I've seen doesn't give me reason to be worried right now."

Lew said that policymakers still need to see what's going on in firms and markets, and have the regulatory tools to deal with problems when they develop.

Lew is also determined to finish implementing the Dodd-Frank financial services reform. "The real problem we saw in 2008 and 2009 is our regulatory institutions had not kept pace with the evolution of our financial institutions," he said. "We need to always stay ahead of that curve."

The Treasury secretary also said that the economy is moving forward and the sense of imminent crisis in Washington has receded. "Towards the end of the year there was a sense of imminent crisis; we're a little bit beyond imminent crisis," Lew said. "We still have a lot of work to do but there doesn't seem to be any push to create a crisis over the debt limit or over shutting down the government. That's helpful."

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Get OANDA's exclusive weekly Market Pulse FX

HTML
  • HTML
  • Text
Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu