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In this July 2, 2014, file photo, Federal Reserve Chair Janet Yellen speaks at the International Monetary Fund in Washington. The Federal Reserve is widely expected to make sixth reduction in bond purchases Wednesday, July 30, 2014.
In this July 2, 2014, file photo, Federal Reserve Chair Janet Yellen speaks at the International Monetary Fund in Washington. The Federal Reserve is widely expected to make sixth reduction in bond purchases Wednesday, July 30, 2014.
(Susan Walsh/AP)

Ignore Facebook’s recent rally. Yellen is right

Janet Yellen had the audacity to point out a couple of weeks ago that some biotech and social media stocks were “stretched.”

Now they are even more stretched, following a rally in names such as Facebook Inc. and Twitter Inc., leaving the Federal Reserve chair facing a barrage of criticism from commentators who believe she is out of her league in discussing stock valuations.