Did President Joe Biden just call an emergency meeting of the PPT?
Bloomberg reported Monday morning that Treasury Secretary Janet Yellen and a coterie of senior financial regulators have been summoned to a meeting with President Biden at the White House following last week's selloff, which marked the worst week for the Dow in eight months.
Federal Reserve Chief Jerome Powell, Treasury Secretary Janet Yellen, Acting Chairman of the Commodity Futures Trading Commission Rostin Behnam will attend meeting with President Biden today.
Attendees also include:
Gary Gensler, Chair of the U.S. Securities and Exchange Commission
Dave Uejio, Acting Director of the Consumer Financial Protection Bureau
Jelena McWilliams, Chairman of the Federal Deposit Insurance Corporation
Michael Hsu, Acting Comptroller of the Currency
The meeting, set for Tuesday, has been called to discuss "the state of the country's financial system and institutions", including discussions of climate risk and "financial inclusion".
Tomorrow, Biden "will meet with lead financial regulators for an update on the state of the country’s financial system and institutions," per the White House.— Josh Wingrove (@josh_wingrove) June 21, 2021
They'll discuss climate risk, "financial inclusion" and access to credit. (Exact attendees unclear.)
Now that the FOMC has signaled that the 'tapering talk' has finally begun via the latest hawkish tilt in its dot plot, released after the close of last week's two-day policy meeting, it's clear that America's economic policymakers are growing increasingly nervous about market stability, given last week's reaction to the Fed. As Lance Roberts pointed out, the implications of tapering are clear: it's positive for rates, and negative for equities.
And with President Biden preparing to raise taxes to finance his "Build Back Better" program of "infrastructure" investment, it's clearly in the White House's interest to do whatever it can to ensure an orderly market transition to the rising rate regime.
If our instincts are correct, this would mark the first meeting of the PPT since a call to discuss "market conditions" held last March as equity markets were in the middle of a brutal (if short-lived) bear market.
Powell is also expected to testify before Congress tomorrow in his latest testimony on the economy as required by the COVID stimulus.