Powell’s Stark Warning: Stocks Are ’Fairly Highly Valued’ as Markets Ignore Reality

Federal Reserve Chair Jerome Powell drops truth bomb on inflated equity markets.

Wall Street's Dangerous Game

Powell's blunt assessment cuts through the market euphoria that's been driving valuations into questionable territory. The Fed chief stopped short of calling it a bubble—but the implication hangs heavy in the air.

Traditional Finance's Blind Spot

While mainstream investors cling to overpriced stocks, crypto markets continue demonstrating actual utility and decentralization. Powell's warning exposes the traditional system's vulnerability to speculative excess—something blockchain technology inherently mitigates through transparency.

The valuation disconnect grows wider by the day. Stocks may be 'fairly highly valued' but at least crypto doesn't pretend to be anything other than what it is—unlike certain blue-chip companies trading at 100 times earnings.

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Tariffs remain a concern for the market, with Powell’s base case indicating a one-time pass-through that will conclude by the end of 2026.

Powell Warns of Inflation and Labor Market Risks

Powell also warned of the risks of both inflation and a weakening labor market. “Two-sided risks mean that there is no risk-free path,” he said. Lowering rates too quickly could result in higher inflation, while higher rates could have negative effects for the labor market. The Fed’s dual mandate is to keep inflation under control while maximizing employment.

Last week, the Fed lowered rates by 25 bps, with Powell calling the decision a “risk management” MOVE in order to address labor market risks.