Yellen: Stock prices 'quite high'

Washington

JANET Yellen, the Federal Reserve chairwoman, said on Wednesday that stock prices were "quite high", stronger language than she had used previously.

Ms Yellen reiterated the Fed's view that risks to financial stability remained modest, despite years of near-zero interest rates, in part because there had not been a marked increase in the use of borrowed money, or leverage, to fund investments.

But she cautioned that the volatility of financial markets could increase when the Fed begins to raise its benchmark interest rate. She noted that the F…