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“Stock prices have risen pretty robustly, but if you look at traditional measures” such as price-earnings ratios, which factor in record-high corporate profits, “you would not see stock prices in territory that suggests bubblelike conditions,” Ms. Yellen said.

Ms. Yellen said she would not hesitate to use the Fed’s regulatory and monetary powers to curb dangerous market bubbles in the future, if necessary, however, and she said the Fed also would remain vigilant against risky practices by banks which could lead to another financial crisis like the one that caused the Great Recession in 2008.

“This is the most important lesson learned from the financial crisis,” she said.