Finance Minister Janet Yellen will host a meeting with top federal regulators as soon as this week to address the recent volatility in the market fueled by so-called ‘meme stocks’, Reuters reported on Tuesday night.
According to Reuters, Yellen will meet with the heads of the Securities and Exchange Commission, the Federal Reserve, the Federal Reserve Bank of New York and the Commodity Futures Trading Commission.
A Treasury spokesman told Reuters that Yellen would seek to discuss “whether recent activities are in line with investor protection and fair and efficient markets”, adding that the meeting is likely to take place as early as Thursday.
Last week, the SEC said it was monitoring trading activities and was prepared to take aggressive enforcement action.
Shares closed sharply on Tuesday, while shares in GameStop GME,
and AMC Entertainment AMC,
– two of the heaviest traded stocks in the past week – sank. The two stocks with a very short circuit, along with others, including silver futures SI00,
has seen wild trade encouraged in recent days through online chats, especially on Reddit.
Due to the worst week of losses since October, Tuesday’s market gains reassured some Wall Street experts.
‘There were fears that the GameStop trade frenzy would spill over to the wider market. that does not appear to be the case, ”said Glenmede Trust Investment Strategy Officer Michael Reynolds in an interview with MarketWatch. ‘It’s a return to the same drivers of the market. Fiscal stimulus and vaccine progress continue to wind down. ”