Trump suspected of illicit enrichment through statements on tariffs
Photo: Donald Trump (Getty Images)
Donald Trump is at the center of a possible congressional investigation after a sharp rise in the stock market triggered by his announcement, according to TIME.
Senator Adam Schiff has called on Congress to investigate whether President Donald Trump engaged in insider trading or market manipulation when he suddenly suspended a massive tariff package.
"I’m going to do my best to find out," Schiff, a California Democrat, tells TIME. "Family meme coins and all the rest of it are not beyond insider trading or enriching themselves. I hope to find out soon."
Schiff's comments on the formal investigation, which were previously unreported, came shortly after the S&P 500 jumped more than 9% on April 9 after Trump announced the tariff suspension. "THIS IS A GREAT TIME TO BUY!!!" Trump wrote on Truth Social within minutes of the market opening, along with the letters "DJT", which stand for both his initials and his media company's ticker symbol.
Senate investigation
Schiff is the first senator to openly call on Congress to investigate potential insider trading by the Trump administration after the president's abrupt rejection of new tariffs.
Such investigations usually fall under the purview of influential congressional committees, such as the Senate Judiciary Committee or the Senate Finance Committee. Both are chaired by Republicans - Senator Chuck Grassley of Iowa and Senator Mike Crapo of Idaho - who avoid conflict with the White House.
Individual lawmakers, such as Schiff, may investigate cases using their office staff, although such investigations will not have subpoena power.
Market reaction
The timing of Trump's announcement and the market rally that followed caused surprise on Capitol Hill. "When my own barber asks me whether Donald Trump is selling short or doing this to try to make money for himself, it shows that a lot of people are pretty suspicious about what’s going on," Senator Tim Kaine, a Democrat from Virginia, tells TIME.
The market reaction to Trump's decision was swift and euphoric. Stocks jumped more than 7% within minutes of the announcement, eventually closing up more than 9%. Bond yields, which had been rising amid fears of an economic downturn, weakened. Oil prices, which had also been falling, recovered.
Treasury Secretary Scott Bessent, a former hedge fund manager, said that the suspension of tariffs was intended to give room for individual negotiations with allies.
Insider trading is the trading of shares or other securities by persons who have access to confidential information.
The US Insider Trading Sanctions Act of 1984 and the Insider Trading and Securities Fraud Control Act of 1988 impose a fine for illegal insider trading. The amount of the fine is three times the amount of profit or loss that could have been avoided through insider trading.
