The Federal Reserve’s Financial Stability Report, released Thursday, followed an unusual six months for markets. Over that period, stocks climbed steadily as the U.S. economic outlook rebounded, and stories of excess began to crop up, such as the frothy markets around so-called “meme stocks” such as GameStop and huge losses at a number of banks tied to problems at a hedge fund, Archegos Capital Management. It said hedge fund opacity had also raised questions during the meme stock episode: Some funds that were betting against the stocks in question took losses as chat board vigilantes poured into them. The answer to both episodes, the Fed seemed to suggest, starts with better data, Jeanna Smialek reports for The New York Times. He also said new rules may be needed for brokerage apps that turn stock trading into a game or contest, a method called gamification, Matthew Goldstein reports.

Source: New York Times May 07, 2021 12:11 UTC