A growing number of top Democrats are calling for formal investigations into alleged insider trading and market manipulation by members of the Trump administration, Republican lawmakers, and individuals close to the White House — all tied to the sharp movements in stock prices following President Donald Trump’s surprise 90-day tariff pause announcement last week.
The market’s whiplash reaction to the tariff developments has fueled suspicion among lawmakers and ethics watchdogs, especially given President Trump’s post on Truth Social just hours before the announcement, declaring:
“THIS IS A GREAT TIME TO BUY!!! DJT”
The S&P 500, which had fallen over 12% in the six days following Trump’s initial “Liberation Day” tariff hike on April 2, rebounded by nearly 10% on April 9 — shortly after the White House revealed it would temporarily halt some of the new duties.
Suspicious Timing and Trades Spark Scrutiny
In the wake of the market surge, Senator Elizabeth Warren, Rep. Alexandria Ocasio-Cortez, and Senate Minority Leader Chuck Schumer are among those demanding answers about possible advance knowledge of the policy reversal.
“Who in the administration knew about Trump’s latest tariff flip flop ahead of time?” asked Sen. Adam Schiff on X. “Did anyone buy or sell stocks, and profit at the public’s expense?”
Adding fuel to the fire: reports of unusually large purchases of call options — bets that a stock will rise — made just before the tariff pause was made public. The profitable timing of these trades has raised alarm bells about potential insider activity
Understanding Insider Trading in Government
Under the STOCK Act, passed in 2012, members of Congress, executive branch officials, and federal employees are prohibited from using nonpublic information for personal financial gain. They must also report trades within 30–45 days of execution or notification.
“Even before the STOCK Act, trading on confidential government information was illegal,” said Kedric Payne of the Campaign Legal Center. “Doing so clearly violates both securities laws and government ethics rules.”
While Trump’s public post encouraging stock buying is not illegal on its own, legal experts say any aides or officials who knew about the tariff pause and acted on that information could face criminal liability.
“If aides had advance knowledge and traded, that’s insider trading under the STOCK Act,” said Nejat Seyhun, a finance professor and insider trading expert at the University of Michigan.
Marjorie Taylor Greene Discloses Trades
One focal point is Rep. Marjorie Taylor Greene, who has already reported over 20 stock trades made on the day before and day of the tariff pause. She maintains her investments are handled by a third-party financial advisor, and there is no current evidence of wrongdoing. However, the timing is under heightened scrutiny.
Calls for Investigation Escalate
In a press conference, House Minority Leader Hakeem Jeffries called for full transparency:
“We need to get to the bottom of the possible stock manipulation unfolding before the American people… including what, if any, advance knowledge members of the House Republican Conference had of Trump’s decision to pause the reckless tariffs.”
On Monday, New York Attorney General Letitia James confirmed her office is conducting a preliminary review of the insider trading claims, though a formal investigation has not yet been launched.
Weak Enforcement Risks
Adding complexity, the Department of Justice’s Public Integrity Unit, which investigates government ethics violations, has been gutted in recent months. According to the Associated Press, multiple top officials resigned earlier this year, and the unit’s caseload is now being distributed across U.S. attorneys’ offices.
“The Public Integrity Unit is barely functioning,” said Payne. “There’s no clear enforcement mechanism in place right now — and that’s deeply troubling.”
What’s Next?
While no direct evidence has surfaced linking any specific official to unlawful trading, the timing of Trump’s remarks, the market spike, and pre-announcement trades have created fertile ground for investigations. The SEC, FINRA, and ethics offices in Congress and the executive branch are expected to play a role in any forthcoming probes.
For now, the political and legal pressure is building — and with new trading disclosures due in the coming weeks, the questions may only grow louder.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Related:
China Warns of Retaliation Against US Allies as Trade Tensions Escalate
Bear Market Survival Guide: How to Stay Smart, Calm, and Positioned for the Rebound
OpenAI spends ‘tens of millions of dollars’ on people saying ‘please’ and ‘thank you’
The Role of Fiscal Dominance in Monetary Policy
Authorities use high tech, called “Overwatch” to enhance border security
