New products, business models, and technologies can add to familiar risks such as excessive leverage, but also create “novel shocks,” she said.

Federal Reserve Governor Lisa Cook said policymakers can proceed more cautiously with additional rate cuts, citing a sturdy labor market and recent bumpiness in inflation data.

Federal Reserve Governor Lisa Cook has warned that financial markets may be at risk of a significant correction, given the current stretched valuations. "Valuations are elevated in a number of asset classes,