Analysis: Yellen-backed policies set to aid risk assets, raise longer-term worries

Treasury Secretary nominee Janet Yellen’s unequivocal support for a pandemic rescue plan cuts both ways for investors, fueling optimism that the rally in risk assets will continue while bolstering concerns over a massive runup in government debt. In her Senate confirmation hearing on Tuesday, the former Federal Reserve chair urged lawmakers to “act big” on […]

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Act big’ now to save economy, worry about debt later, Yellen says in Treasury testimony

Janet Yellen, U.S. President-elect Joe Biden’s nominee for Treasury Secretary, urged lawmakers on Tuesday to “act big” on coronavirus relief spending, arguing that the economic benefits far outweigh the risks of a higher debt burden. In more than three hours of confirmation hearing testimony, the former Federal Reserve chair laid out a vision of a […]

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Analysis: Pricey U.S. stock valuations put burden on earnings to keep rally going

U.S. corporate results and profit outlooks are becoming increasingly important in sustaining investor optimism in a stock market rally that has driven valuations close to a 20-year high. With fourth-quarter reports starting to pour in, the benchmark S&P 500 is trading at 22.6 times earnings estimates for the next 12 months, according to Refinitiv Datastream. […]

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