Several U.S. lawmakers are demanding an investigation into whether former President Donald Trump engaged in market manipulation or insider trading, following his abrupt policy reversal on global tariffs that sent stock markets soaring.
Democratic Senator Adam Schiff of California raised concerns on Wednesday via a post on X (formerly Twitter), questioning whether members of the Trump administration had advance knowledge of the tariff decision and potentially profited from the subsequent market rally.
“Who in the administration knew about Trump’s latest tariff flip-flop ahead of time? Did anyone buy or sell stocks, and profit at the public’s expense?” Schiff wrote. “I’m writing to the White House — the public has a right to know.”
The demand for transparency follows Trump’s social media post early Wednesday encouraging Americans to invest, writing in all caps: “IT’S TIME TO BUY.” Just hours later, he announced a 90-day suspension of new tariffs on numerous countries—excluding China—prompting a historic rebound on Wall Street.
The Dow Jones Industrial Average surged by 7.87%, marking its largest single-day gain since 2008. The tech-heavy Nasdaq jumped 12.16%, its most significant rise since 2001.
Democratic members of the House Financial Services Committee also expressed alarm, accusing Trump of engaging in “the world’s biggest market manipulation scheme.”
Adding to the controversy, Trump signed off his Truth Social post with the initials “DJT”—a nod to both his name and the ticker symbol of Trump Media & Technology Group, which saw its stock rise over 21% by the day’s end.
Later that day, White House Communications Advisor Margo Martin posted a video of Trump welcoming billionaire Charles Schwab, founder of the Schwab financial empire, to the Oval Office.
“This is Charles Schwab,” Trump said, introducing the 87-year-old to a group of champion race car drivers. “He’s not just a company, he’s actually an individual! And he made $2.5 billion today.”
Richard Painter, a former chief White House ethics lawyer under President George W. Bush, weighed in, suggesting the situation merits legal scrutiny.
“Presidents are not investment advisors,” Painter told NBC News. “This scenario could expose the president to charges of market manipulation.”
Despite the backlash, the White House defended Trump’s actions.
“It is the responsibility of the president of the United States to reassure markets and Americans about their economic security in the face of constant media scaremongering,” White House spokesperson Kush Desai told The Washington Post.
The controversy has reignited debates over ethical boundaries in presidential communication, particularly when linked to financial markets and public trust.
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