The Federal Reserve doesn't see risks to market stability, even as concern about bubbles grows

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Some market pros see the frenzied short squeezes in Gamestop and other stocks as signs of a bubble brewing.

was up 300%. Retail investors have also been buying out of the money call options at a record pace.

When the pandemic hit markets hard last March, the Fed responded quickly to the unprecedented shock by taking interest rates to zero and unrolling programs that provided an assortment of vehicles to help keep financial markets liquid. As for the short squeeze traders, Arone said it's a warning of bubble behavior. "What's going on there is a group of folks on Reddit are targeting stocks with a high amount of short interest. It's very specific, what's going on with AMC and what's going on with Gamestop," he said. "But I do think you have this growing investor class of very brazen folks.

"I think behind the scenes, the Fed is watching markets. They will not acknowledge some of the frothiness in some of these places," he said. "But you can rest assured they see what's going on and probably they don't want to create yet another asset price bubble."

 

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Your headline is mis-leading. Whilst a bubble & market stability are mutually inclusive, any stability the FED gives as a result of the bubble bursting, will again go to bailing out the hedge funds and companies with assets whilst joe bloggs will continue to loose out and suffer.

The federal reserve is following Trump and making the rich richer . It is time to end this BS

the fed are a bunch of snake oil salesmen who always last to know what is really going on. the bubble is more about lack of hft regulation and don't expect much from the us SEC

No they don't because they think everyone is stupid . Maybe right about some probably are .

How is WSB any different than when Boomer jimcramer goes on MadMoneyOnCNBC giving out stock advice to prescreened callers Isn’t this also pumping stock? Where is his DD WSB DD is free for all to use.

The Roman Empire never saw its own demise either. The sooner it happens to you the better for humanity.

Powell isn’t a 🌈 🐻!!!! 🚀 🌚 🖨 💵

This is an issue but this isn’t. 😳GME GameStop QQQ

The feds are saying screw you too. So get over it

THEY NEVER (TELL THEY) SEE IT. Why would the Club owner have any Incentive to tell his crowd that the last song will be playing in less than an hour or two, when a massive crowd is filling his lines. Keep the music on!

What bubble? 🙄

The fed is with us! $GME $AMC

TOO LATE TO PUT OUT THE FIRE

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