Economics

Yellen and Powell Wary of Financial Froth While They Push Stimulus

  • Policy makers face dilemma as markets boom and employment lags
  • Yellen, Powell say true jobless rate may be close to 10%
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U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell appear wary of signs of froth in financial markets, even as they press ahead with economic stimulus measures that are elevating the euphoria.

There “may be sectors where we should be very careful,” Yellen told CNBC television last week, when asked about possible speculative sizzle.