White House monitoring situation involving GameStop, other firms

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FILE PHOTO: GameStop gift cards are shown for sale at a GameStop Inc. store in Encinitas, California, U.S., May 24, 2017. REUTERS/Mike Blake/File Photo

WASHINGTON (Reuters) – The White House and Treasury Department are monitoring the situation involving GameStop and other companies that have seen sharp gains on the stock market, White House Press Secretary Jen Psaki said on Wednesday.

Shares of both GameStop and AMC Entertainment Holdings more than doubled on Wednesday, forcing hedge funds to take heavy losses and sparking calls for scrutiny of anonymous stock market trading posts on social media.

Psaki said the U.S. stock market was not the only measure of the health of the economy, and President Joe Biden was continuing to press for approval of a $1.9 trillion economy recovery package to aid working- and middle-class families.

Reporting by Alexandra Alper and Jeff Mason, writing by Andrea Shalal, editing by Chris Reese

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