February 26, 2015 / 7:35 PM / 5 years ago

Asset prices have overshot, correction will come: Fed's Fisher

The prices of assets such as stocks have overshot due in part to record low interest rates and money printing by major central banks, and will see a correction “at some point”, a top Fed official said on Thursday.

“I believe markets have overshot and we’re in for a correction at some point,” said Dallas Fed President Richard Fisher, answering questions after a lecture in London.

Fisher cited the U.S. S&P 500 .SPX and Britain's FTSE 100 .FTSE stock indexes as examples of this trend.

He added that it will be difficult to gauge the full market impact of the central bank’s stimulus measures until monetary policy is normalized.

“We won’t know the result until we normalize monetary policy and that will take several years,” Fisher said.

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