NEW YORK (Reuters) – Vanguard Chief Executive Officer Bill McNabb, speaking on CNBC on Thursday, said that the U.S. Federal Reserve will raise short-term interest rates in a “fairly steady, gradual” fashion.
“Rising rates are inevitable at some point,” he said, adding he thought the U.S. central bank would raise rates in “small increments.”
Asked about remarks made on Wednesday by Federal Reserve Chair Janet Yellen, who said that stock prices were “quite high,” McNabb agreed and said stock prices were currently in the “highest decile” on a historical basis.
He noted that 90 percent of the time over history, stock valuations had been lower than they were today.
(Reporting by Jennifer Ablan; Editing by Leslie Adler and Ted Botha)