Some asset prices in the market can be frothy

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Stocks turn lower on the comment

Feds Powell says that some asset prices in the market can be frothy. He followed that up by saying that it’s because of the reopening. Nevertheless the price of stocks have moved lower on the comment.

The NASDAQ index is now down around -11 points. The Dow industrial average down -127 points.

On interest rates in the market, Feds Powell says:

  • we do expect further downward pressure on a short-term rate
  • we do expect further down word pressure on short term rates
  • overall financial stability picture is mixed but manageable
  • capital in banking system is in a good place
  • reiterates Fed will taper asset purchases when the time comes
  • time for taper is not yet
  • we’ve had one great job report, it’s not enough
  • when the time comes to talking about taper, we will
  • we just need to see more data
  • only thing that will guide us is have the tests been realized

Fed concludes press conference at 3:25 PM ET.

Overall the press conference was a bit more dovish.

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