Bernanke sees no evidence of stock market bubble

[admin]

Bernanke sees no evidence of stock market bubble
from MarketWatch.com - MarketPulse
WASHINGTON (MarketWatch) -- Federal Reserve Chairman Ben Bernanke said Tuesday that he does not see any sign that the Fed's ultra-loose monetary policy is creating a bubble in equity markets. "I don't see much evidence of an equity bubble," Bernanke said in testimony to the Senate Banking Committee. Earnings are very high, and equity holders are being risk-averse in their behavior, Bernanke said. The Fed is watching closely for signs of bubbles in financial asset markets and trying to ascertain who would be hurt if the Fed was wrong and an asset class was in a bubble and popped. "We do not rule out that, if these problems become sufficiently worrisome, that they would be taken into account in our monetary policy," he said.