Fed's Fischer Sees Few Obvious Bubbles in U.S. Economy

Federal Reserve Vice Chairman Stanley Fischer said he doesn’t see immediate risks of financial bubbles in the U.S., while raising concerns that the central bank’s policy tool kit to deal with such occurrences is limited and untested.

“Banks are well capitalized and have sizable liquidity buffers, the housing market is not overheated and borrowing by households and businesses has only begun to pick up after years of decline or very slow growth,” the Fed’s No. 2 policy maker in a speech Friday in Boston. Still, he warned that “potential shifts of activity away from more regulated to less regulated institutions could lead to new risks.”