Feldstein Says Yellen Has Done Great Job of Lowering Jobless Rate

The transcript discusses the challenges faced by central banks in adjusting interest rates and the potential impact on equity markets. Concerns are raised about the high valuations in the equity market, which could lead to significant economic consequences if corrected. The discussion also touches on the role of central bank policies, particularly under Chair Yellen and Chairman Powell, in managing inflation and asset prices. The fragility of financial markets and the potential instability in the economy are highlighted as key issues.

What are the implications of asset price inflation as opposed to inflation in goods and services?

What are the challenges faced by central banks in managing financial market stability?

How has the European Central Bank's policy of negative interest rates affected asset prices?