Federal Reserve Chair Powell Addresses Elevated Asset Prices

Federal Reserve Chair Powell Comments on Elevated Asset Prices

Jerome Powell, Chair of the U.S. Federal Reserve, addressed concerns regarding high asset prices during a speech in Providence, Rhode Island, on September 17, 2025.

• Powell acknowledged that asset prices, including stocks, are currently at elevated levels, indicating that equity prices are fairly highly valued.
• He emphasized the Fed’s focus on overall financial conditions and the impact of their policies on these conditions.
• In the lead-up to recent policy meetings, stocks rallied as expectations grew that the Federal Open Market Committee would lower its benchmark borrowing rate.
• Following the Fed’s decision to cut rates by 0.25 percentage points, stock markets have reached record highs.
• Powell noted that markets respond to Fed communications, which influence their pricing strategies, including mortgage rates.
• Despite the high equity values, Powell stated that it is "not a time of elevated financial stability risks."

  In summary, while asset prices are high, Powell reassured that current financial stability remains intact.