Fed Chief Powell says stock prices appear 'fairly highly valued'

Federal Reserve Chair Jerome Powell on Tuesday noted that asset prices, a category that typically includes stocks and other risk instruments, are at elevated levels.

During a speech in Providence, Rhode Island, the central bank leader was asked how much emphasis he and his colleagues place on market prices and whether they have a higher tolerance for higher values.

"We do look at overall financial conditions, and we ask ourselves whether our policies are affecting financial conditions in a way that is what we're trying to achieve," Powell said. "But you're right, by many measures, for example, equity prices are fairly highly valued."

In the run-up to last week's policy meetings, stocks and other assets rallied strongly as conviction grew that that the Federal Open Market Committee would