Schumer and Warren urge SEC to probe potential market manipulation by Trump

Senate Democratic Leader Chuck Schumer and Senator Elizabeth Warren are urging the Securities and Exchange Commission to look into potential market manipulation by the Trump administration. They have raised concerns about whether individuals close to the president may have used insider knowledge to benefit financially from the recent decision to pause steep tariffs.

In a joint letter to the SEC, Senators Schumer and Warren have requested an investigation into possible violations of federal securities laws by President Trump and his associates. They specifically point to a statement made by Trump on his social media platform regarding the stock market being a “GREAT TIME TO BUY,” which preceded the announcement of a 90-day pause on tariffs and a subsequent market rally.

The senators highlighted Trump’s message on Truth Social advising people to invest at a particular time, suggesting that some individuals may have known in advance about the tariff delay. They referenced a meeting between Trump and prominent financier Charles Schwab, in which Trump pointed out Schwab’s financial gains on the same day the tariff announcement was made.

Warren shared a video of this encounter on a social platform and criticized Trump for potentially favoring the ultra-rich. The senators are questioning whether Trump, his associates, or donors engaged in activities such as insider trading or market manipulation, prompting their call for an SEC investigation.

Additionally, Senators Adam Schiff, Ron Wyden, Mark Kelly, and Ruben Gallego have joined Schumer and Warren in expressing concerns about potential violations of securities laws. They are seeking information from the SEC on any actions being taken to address these allegations and whether there have been any communications between the SEC and Trump or his affiliates regarding the matter.

In a related development, Schiff and Gallego have sent a letter to the Office of Government Ethics and the White House chief of staff, emphasizing the need for an inquiry into possible conflicts of interest among White House officials who may have made financial transactions based on insider knowledge of the tariff pause. Schiff has expressed doubts about the White House’s willingness to investigate the issue and has indicated a readiness to pursue an independent investigation if necessary.

The concerns raised by these Democratic senators underscore a broader scrutiny of the Trump administration’s financial dealings and the potential impact of insider knowledge on market dynamics. The SEC’s response to these requests for investigation will shed light on whether any laws have been breached and the extent of regulatory oversight needed to address these allegations.