SANTA CRUZ, Calif. Feb 28 Rising U.S. equity
prices can largely be explained by low interest rates, an
improving U.S. economy, and the expectation of tax cuts under
President Donald Trump, San Francisco Federal Reserve Bank
President John Williams said Tuesday.
"I'm not that worried about the stock market," Williams told
the Santa Cruz Chamber of Commerce, adding that it doesn't seem
"out of whack" with fundamentals. His biggest worry these days,
he says, is the possibility that the economy is kept running too
hot for too long, a situation that could set the stage for
inflation and aggressive Fed rate hikes in response.
(Reporting by Ann Saphir; Editing by Chizu Nomiyama)