Yellen comments
- We see ratios (like P/E) at the high end of historical valuations
- Economists don't have a terrific record at valuing stocks
- We don't see major financial risks, no worrisome buildup on leverage or credit
- I'm personally worried about the US debt situation
- The tax cut package is expected to add to the national debt
- Debt-to-GDP ratio is not worrisomely high, but not low either
- Some future downturn would mean the amount of fiscal space is limited
- Generally we see modestly faster growth over the next couple years
