Lisa Cook , Member of the Board of Directors of the American Federal Reserve Bank , stated that the financial asset of the Federal Bank is overvalued and we must be ready to falls in its value. This is an unusual warning from the central bank location.
“The value of many financial assets, including stock markets and corporate bonds, valuation is too high” – she said at a conference at the University of Michigan University Law School in Ann Arbor town January 6 .
“Their opinion of risk premium is also applicable to lower values of historical distribution which indicates that the markets may provide an ideal scenario, therefore they are sensitive to a high downturn which can occur due to blogs in economic news and investor sentiment changes , added the Fed Federation.
“Some commercial properties, especially office properties, prices will decline significantly from 2022 onwards. I am sensitive to the changes in this sector” – said Lisa Cook.
It is worth noting that central bankers usually tend to not comment on the state of affairs in financesmarkets.ThisisparticularlyrelevantfordecisionmakersintheFederalReservebecausetheU.S.capitalmarketplaysagreaterroleintheU.S.thaninEuropeandJapan.Thus,openwarningsfromFEDrepresentativesareveryrare.
