Treasury Secretary Janet Yellen will host a meeting this week with top federal regulators to address recent market volatility fueled by so-called “meme stocks,” Reuters reported Tuesday evening.
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 Department spokesman told Reuters that Yellen will try to discuss “whether recent activities are consistent with investor protections and fair and efficient markets,” adding that the meeting could take place as early as Thursday.
Last week, the SEC said it was monitoring trading activity and was prepared to take aggressive enforcement action.
Shares closed sharply higher on Tuesday, while shares in GameStop GME,
and AMC Entertainment AMC,
– two of the most traded stocks in the past week – sank. Those two stocks with a high short position, along with others, including silver futures SI00,
have seen wild trade in recent days encouraged by online chatter, especially on Reddit.
After the worst week of losses since October, Tuesday’s market gains reassured some Wall Street experts.
“There were fears that GameStop’s trading frenzy would spread to the wider market. that does not seem to be the case, ”Michael Reynolds, investment strategy officer at Glenmede Trust, told MarketWatch in an interview. “It is a return to the same drivers of the market. Tax incentives and advances in vaccines continue to roll in. ”