Treasury Secretary Janet Yellen will host a meeting with top federal regulators as soon as this week to address the recent market volatility spurred by so-called “meme stocks,” Reuters reported Tuesday night.
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, according to Reuters.
A Treasury spokesperson told Reuters that Yellen will seek to discuss “whether recent activities are consistent with investor protection and fair and efficient markets,” adding that the meeting may take place as soon as Thursday.
Last week, the SEC said it was monitoring trading activity and was prepared to take aggressive enforcement action.
Stocks closed sharply higher Tuesday, while shares in GameStop GME, -60.00% and AMC Entertainment AMC, -41.20% — two of the most heavily traded stocks in the past week — sank. Those two heavily shorted stocks, along with others, including silver futures SI00, +2.40%, have seen wild trading in recent days that has been encouraged by online chatter, especially on Reddit.
Coming off the worst week of losses since October, Tuesday’s market gains reassured some Wall Street experts.
“There were fears that the GameStop trading frenzy would spill over into the broader market. that doesn’t seem to have been the case,” Michael Reynolds, investment strategy officer at Glenmede Trust, told MarketWatch in an interview. “It’s a return to the same drivers of the market. Fiscal stimulus and vaccine progress continue to be tailwinds.”
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