Bernanke on artificial markets.
"The equity premium associated with stock prices is quite wide. Stocks don’t appear overvalued given earnings and interest rates. Now if interest rates went up some, that would have a negative effect on stock prices."
The Bernank is conveniently forgetting about QE. Without the Fed for the past 3 years, the Dow would likely be a few thousand points lower.
Fed Chairman testifies before the Senate Banking Committee. Full summary here.
Analysis from Bloomberg:
Equity bubble? Bond bubble? Is Bernanke right?