Yellen Say Commercial Real Estate In A Bubble

Yellen Say Commercial Real Estate In A Bubble
The comic features features Fed Chair Janet Yellen as a contestant on the game show "Who Wants To Be A Millionaire". The audience behind Yellen, which includes former Fed chief Ben Bernanke, are throwing tomatoes at her. Caption for the comic: "After disappointing markets last week, will Yellen make it up to them later this year?" The Federal Reserve's decision last week not to raise interest rates disappointed most market players who were expecting the central bank to hike rates for the first time since 2006. The questions remains whether Yellen and the Fed will make it up to them at some point later this year, or will they delay the move to early 2016. The central bank has two more scheduled policy meetings before the end of 2015, in late October and mid-December.

U.S. Federal Reserve Chair Janet Yellen is getting a bit of a reputation as a very highly placed financial analyst as she and her staff continue to point out bubbles in various asset classes when they see them. In the last year or so the garrulous Fed chair has warned about the S&P 500 and the biotech and social media sectors – although so far the return has not been great on that call.

Yellen’s most recent call comes this week as the Fed Chair appears on Capitol Hill for two days of testimony after the release of the Fed’s latest official Monetary Policy Report to Congress. This time Yellen and the Fed are warning about a speculative bubble in the commercial real estate market.

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