Yellen: Investors Not Fully Appreciating Risk

Falling corporate bond spreads and volatility indicators are signs that investors may not fully appreciate the risk of future losses, Fed Chair Janet Yellen warned on Wednesday.

Taking a variety of factors into consideration, “I do not presently see a need for monetary policy to deviate from a primary focus on attaining price stability and maximum employment, in order to address financial stability concerns,” she said.

“That said, I do see pockets of increased risk-taking across the financial system, and an acceleration or broadening of these concerns could necessitate a more robust macroprudential approach,” Yellen said in prepared remarks for a speech at the International Monetary Fund.

CNBC

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