With all and sundry expressing apprehension about the recent highs of markets, US Fed Reserve Chair, Janet Yellen stated that she sees no risk to financial stability.

Her speech at a press conference, after raising rates for the third time this year, stated the reason for ‘not losing sleep’, as a more resilient banking system and less increase in leverage or credit growth.

Whilst the word ‘bitcoin’ is on virtually everyone’s lips, she also played down the Fed’s role in cryptocurrency, calling it an unstable ‘speculative asset’ without legal tender, and was clear that the Fed did not play a regulating role.

It will be interesting to see how long these opinions last.