UPDATED 7:14 AM PT – Tuesday, February 2, 2021
According to former White House economic adviser Larry Kudlow, the government should not intervene in the GameStop trading frenzy. During an interview Monday, he noted he did not want to see more federal government regulation in these markets.
This comes as Biden’s economic adviser announced the administration will look into the legal questions surrounding the GameStop stock surge. In response to this, Kudlow suggested if there are issues then they should let the private exchanges deal with those issues.
Meanwhile, press secretary Jen Psaki said the White House sees the recent volatility of the stock markets a pressing issue. In a press briefing Monday, she noted the White House sees congressional involvement in the market as appropriate.
Last week’s financial battle between everyday investors and Wall Street brokers shed a renewed spotlight on the government’s role in the economy, but the White House has yet to announce any policy changes.
“There is an important set of policy issues that have been raised as a result of market volatility in recent days and we think congressional attention to these issues is appropriate,” Psaki stated. “And would welcome working with Congress moving forward as we dig into these further policy issues.”
Last week, retail investors drove video game seller GameStop’s stock price through the roof, squeezing Wall Street brokers who invested large amounts into the shorted stock and are now losing millions of dollars.