U.S. Treasury Secretary Jack Lew said financial market turmoil has yet to cause enough stress in financial institutions to warrant concern, CNBC reported on Thursday.
"We are keeping a careful eye on market volatility," Lew told CNBC in an interview on Wednesday that was aired on Thursday.
"I keep my eye on the market," he added, "but I try to not respond immediately and form judgments based on minute-to-minute or day-to-day market moves."
"We are looking at what, if any, risks there are, and so far have not seen the kinds of stresses in financial institutions that would cause us to have any immediate concerns," he said.
Since the dramatic lows of last week driven by concerns about China's economy, the Dow Jones industrial average has risen 6.4 percent based on Wednesday's closing gains. The S&P 500 index and Nasdaq composite index have gained 4.4 percent and 10.7 percent, respectively, from their lows of last week. CNBC reported.
Asked whether he thinks high-frequency trading causes more risk in the markets and is unfair to individual investors, Lew said he's mindful of the concerns, CNBC reported.
"When you see the market open and close with dramatic movements ... it raises questions as to whether there are things in the architecture of the market, the structure of the markets, that are contributing to some of the moves," he said.
He said he's not mulling regulations to limit the role of computers.
"I don't think it's a great idea for us to pick and choose what forms of investment and market practices are the way of the future. Governments trying to think that through for markets can get you to a bad place," he said.
Lew called the U.S. economy one of the bright spots in the world, with "continuing signs of strength" but acknowledged the desire to do even better.
"We've [recently] had a consistent and quite stable series of indicators that the U.S. economy remains strong," he told CNBC. "We're seeing good, sustained job growth. And we're seeing increasingly strong consumer demand."
© 2023 Thomson/Reuters. All rights reserved.