Fed’s Bullard says not seeing broader risks from Gamestop trading frenzy
The frenzied trading in Gamestop and other stocks driven by new retail trading platforms is not the result of the Fed’s loose monetary policy, and is not an issue for the central bank, St. Louis Fed president James Bullard said Wednesday.
“Fed policy has been appropriate given the crisis that we are in,” Bullard said. “As far as the trading itself, that would be an issue for the (Securities and Exchange Commission) not for us. You always have speculative activity going on in the financial markets. This was a spectacular case of that. But I don’t see it having consequences for the stance of monetary policy.”
Source: Reuters (Reporting by Howard Schneider; Editing by Chizu Nomiyama)