'Your World' Panel: Did 'Chairwoman' Maxine Waters' Warning Cause Stock Sell-Off?
Neil Cavuto and his financial panel on Wednesday discussed whether a curt warning from incoming House Financial Services Committee Chairwoman Maxine Waters caused the New York Stock Exchange to start a selloff.
The NYSE index finished the trading day down about 206 points -- or 8/10 of a percentage point. The Dow Jones Industrial Average [DJIA] began to dip as well after the 10:14 AM ET comments by Waters.
"You might need to look no further than Maxine Waters -- who was speaking, then got stocks selling," Cavuto said.
On Capitol Hill, Waters, a South Los Angeles Democrat, warned that people should "make no mistake -- come January in this committee, the days of this committee weakening regulations and putting our economy once again at risk of another financial crisis will come to an end."
Cavuto said Waters was referring to the slackening of strict regulations tacked on banks and other financial institutions as time passed since the 2008 meltdown.
FreedomWorks economic freedom director John Tamny said the warning was "well telegraphed, but naive."
Tamny said that Waters' message dealt more with cracking down on banks' risk activity rather than the banks themselves.
He said that people who hold savings accounts and other similar instruments want the best return on investment, which undoubtedly includes taking a risk.
"[Waters would be] reducing the ability to do what they do best."
However, Fox Business Network's Charles Gasparino said he didn't think the sell-off had to do with Waters' statements.
"She can't tell the Fed[eral Reserve] what to do," he said, adding that Waters is one top Democrat against a GOP-majority Senate and Republican president.
Cavuto added that New Jersey Rep. Bill Pascrell (D-Paterson) -- who will be in the majority on the Ways & Means Committee -- reportedly said that Trump's new trade deals need to be examined closer by Congress.
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