Several Federal Reserve officials are worried about rising risks in the U.S. stock market, according to minutes released Wednesday from June's Federal Open Market Committee meeting.
"A few participants expressed concern that subdued market volatility, coupled with a low equity premium, could lead to a buildup of risks to financial stability," according to minutes.
Some policymakers also suggested investors may be too comfortable with buying risky assets like stocks and some officials believed "equity prices were high when judged against standard valuation measures," according to the meeting notes.
U.S. stocks have surged to all-time highs as the bull market stretches past its 8th year on the back of low interest rates from the central bank. Meanwhile investors grow increasingly complacent. The CBOE Volatility Index (.VIX) fell in early June to 9.37, its lowest since Dec. 27, 1993. The VIX traded near 11 Wednesday.
Fed officials also appeared concerned the central bank's attempts to raise interest rates — theoretically making it more expensive to borrow money — were not having an effect on financial markets. Corporate and Treasury yields have decreased this year even as the Fed hikes rates.