President Joe Biden and Janet Yellen stayed out of the GameStop controversy swirling on Wall Street, dodging a question about it at th...
President Joe Biden and Janet Yellen stayed out of the GameStop controversy swirling on Wall Street, dodging a question about it at the White House Friday.
They got asked about GameStop during their first joint public appearance since Yellen was sworn in as the new Treasury Secretary, but didn't delve into the issue on a day when GameStock shares once again rocketed upward amid a fierce battle between individual investors and hedge funds.
The new president and the former Fed chair were silent when a reporter shouted a question about whether they even discussed the issue, on a day retail investors cored another win against institutional firms that had shorted the game store stock.
President Joe Biden and Treasury Secretary Janet Yellen didn't respond to a shouted question about GameStop Friday, as the stock once again helped send Wall Street on a wild ride
Biden used the event to make a pitch for passage of his $1.9 trillion COVID relief package.
'We have learned from past crises that the risk is not doing too much. The risk is not doing enough,' Biden said. He said there was an 'overwhelming consensus' among economists that the nation was in a 'unique crisis' requiring action, and one again referenced former Trump economic advisor Kevin Hassett.
'We have to act now,'he said. 'There is an overwhelming consensus among economists ... that this is a unique moment and the cost of inaction is high.'
He cited the latest figures of 900,000 American filing for unemployment, with 30 million Americans not having enough to eat.
'We need to make these investments so that the economy can grow,' he emphasized, 'the remainder of this year and next year. The investments now will help the economy grow,' he said.
Later, departing the White House for a visit to wounded servicemen and women at Walter Reed medical center, Biden didn't directly answer a question about passing relief through fast-track 'reconciliation' procedures that would allow much of it to move on a simple majority vote rather than be subject to a GOP filibuster.
A person walks past a GameStop store in the Manhattan borough of New York City, New York, U.S., January 29, 2021
The GameStop clash has roiled financial markets
United States President Joe Biden, center, with US Vice President Kamala Harris, left, participates in an economic briefing with US Secretary of the Treasury Janet Yellen, right, in the Oval Office of the White House in Washington, DC, USA, 29 January 2021
'I support passing COVID relief with support from Republicans if we can get it. But the COVID relief has to pass. There's no ifs, ands or buts,' he said.
GameStop shares had surged by 1,700 percent this month thanks to the 'Wolves of Reddit,' as investors bid up its price in an effort to punish institutional investors.
GameStop's continued rally came as Robinhood began to allow 'limited' purchases of shares on Friday after provoking widespread outrage with a buying ban yesterday, as the trading platform struggled to cover the bets its customers made amid extreme volatility.
Stock in theater chain AMC, which like GameStop had been heavily shorted, also jumped on Friday, rising as much as 85 percent.
White House press secretary Jen Psaki also sought to keep her distance from the subject Friday. 'The message is that the U.S. government is starting to work as it should. The SEC is a regulatory agency that oversees and monitors developments along these lines. It is currently in their purview. They've put out several statements this week. We will certainly defer to them on that,' she said when asked for comment.
The moves have helped cause wild swings in in the market, which was also hit with news about vaccines and the pandemic Friday.
The Securities and Exchange Commission warned trading houses and those waging social media battles against them that it was monitoring the situation for any wrongdoing.
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