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- White House press secretary Jen Psaki said the Treasury and others were “monitoring the situation” with GameStop.
- The company’s shares have climbed over 1,200% recently after Redditors collectively decided to buy.
- “It’s a good reminder though that the stock market isn’t the only measure of the health of our economy,” Psaki said.
- Visit the Business Insider homepage for more stories.
White House press secretary Jen Psaki said on Wednesday that Treasury Secretary Janet Yellen was “monitoring the situation” around GameStop-related changes in the stock market.
“Our team, our economic team, including Secretary Yellen and others, are monitoring the situation,” Psaki said at a press conference. “It’s a good reminder though that the stock market is not the only measure of the health of our economy. It does not reflect how middle and working class families are doing.
Yellen said the new Treasury team, led by Yellen, the first female Treasury secretary, is usually the unit responsible for answering questions about the U.S. stock market.
You can watch the video, posted by Bloomberg, below.
—Bloomberg Quicktake (@Quicktake) January 27, 2021
The White House declined to comment further in response to Insider’s request.
The comment was made in response to a reporter’s question regarding concerns about the stock market, which was rocked by a frenzy sparked by a group of Redditors. As Insider’s Ben Gilbert explains, a 2 million-member Reddit forum named Wall Street Bets is behind the surge in Gamestop’s stock, which has soared 1200% in recent weeks.
Redditors collectively decided to buy more shares of Gamestop after experts predicted the company, which was in dire straits in 2019, doomed. GameStop, whose business model revolves around the dying physical video game industry, was somewhat rescued during the pandemic as people sought to be entertained in their homes.
Amid the uproar, the r / WallStreetBets Reddit forum appeared to be down for a brief period on Wednesday morning. Vanguard, TD Ameritrade and Charles Schwab’s online trading platforms also experienced disruptions, with thousands of users reporting issues on DownDetector. TD Ameritrade told Insider the problems were “due to high volume.”
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