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What is the Working Group on Financial Markets?

Working Group on Financial Markets

Nicknamed the Plunge Protection Team, it's a group of economists and government officials that meet periodically to discuss recommendations for the protection of financial markets in the US.

Where have you heard about the Working Group on Financial Markets?

It was established in 1988 by an executive order signed by president Ronald Reagan. It was set up in response to extreme market volatility in 1987, which led to the infamous Black Monday crash in October of that year.

What you need to know about the Working Group on Financial Markets.

The team includes the Treasury Secretary, the board of governors of the Federal Reserve, the chairman of the Securities and Exchange Commission and the chairman of the Commodity Futures Trading Commission. They meet to discuss what would happen if the value of the stock market plunged suddenly.

Critics say intervention by the government is interference as markets should be left to self-correct themselves during volatile periods, but others back efforts to stabilise the market.

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