Fed's Yellen welcomes rethinking of risk

LOS ANGELES (Reuters) - A reassessment of risk that has shaken financial markets is a healthy development that will contribute to economic growth in the long haul, San Francisco Federal Reserve President Janet Yellen said on Tuesday.

Before the credit crisis surfaced in early August, many markets were looking overvalued, making a readjustment all but inevitable, Yellen said.

"There were signs of what might be called bubbles in bond and credit markets," she said.