Economy, markets test patience of Fed chief Yellen

When the chair of the Federal Reserve, Janet Yellen said stocks were overvalued and bond yields too low, it was a signal that investors should not expect to indulge on the Fed's cheap dollars foreverJanet Yellen could be losing patience. When the chair of the Federal Reserve said Wednesday that stocks were overvalued and bond yields too low, it was a signal that investors should not expect to indulge on the Fed’s cheap dollars forever. Friday’s April jobs report that suggested the economy still has some ways to go to meet the Fed’s criteria for beginning to raise interest rates. When Yellen became Fed chair 15 months ago the path ahead seemed clear: end the huge quantitative easing stimulus program of her predecessor, Ben Bernanke, in October 2014, and then after around six months begin raising interest rates.

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