The White House is staying from the Wall Street chaos unleashed by a Reddit group.
Press secretary Jen Psaki was peppered with questions that she refused to answer directly about the industry volatility between a Reddit band called WallStreetBets banded together to squeeze short-sellers from their positions by buying up stock in video game retailer GameStop and other flailing companies.
The Reddit group briefly went confidential. Trading program Robinhood and online broker Interactive Brokers restricted trading in certain securities due to the recent volatility in a number of stocks, sparking controversy.
"Given all of the volatility surrounding Wall Street and GameStop, what's the Biden government doing to safeguard the average American investor if there's going to be, possibly a major market correction?" CNN reporter Kaitlin Collins requested.
Psaki known her to an SEC announcement, which said the commission was"tracking the on-going market volatility"
"Beyond just observation ithas he had some conversations with economical officials about what's happening?" Collins pressed.
"He is briefed by his own economic group regularly," Psaki explained. "But I don't have anything more to read out for you."
Psaki again pointed to the SEC announcement when another correspondent addressed the controversy.
A third reporter requested Psaki if Treasury Secretary Janet Yellen could recuse herself out of advising the president on GameStop, given that she obtained around $810,000 in speaking fees from Citadel, the hedge fund which bailed out one of the primary winners at the Gamestop frenzy.
Both Citadel and Point72 infused nearly $3 billion into Melvin Capital, which saw enormous losses after betting from the pumped up stock. The White House stated on Wednesday that Yellen was tracking the circumstance.
GameStop inventory has rocketed from under $20 earlier to close roughly $350 Wednesday. The stock closed at $193.60down more than 44 percent -- nonetheless in after hours trading the frenzy resumed with all the stock up more than 50 percent and approaching $300 per share.