Why Janet Yellen won't raise rates to prevent another financial bubble

There’s no financial bubble right now worrisome enough to justify raising interest rates, Federal Reserve Chairwoman Janet Yellen reasserted Wednesday.

Its the clearest statement yet that the new U.S. central bank chief has made that she does not anticipate using monetary policy to counteract the prices of stocks, bonds or real estate from rising out of line with fundamental values. Doing so, in her estimation, could undercut the Fed’s efforts to meet its goal of promoting employment by raising the cost of borrowing for business and consumers looking for home or car loans.