The top economic adviser at the White House rejected suggestions that there may have been insider trading in relation to President Donald Trump‘s decision to pause his reciprocal tariffs.
Why it Matters
Democrats in Congress are pushing for an investigation into the potential for insider trading after the dramatic swings in the stock markets. Before announcing his tariff pause on April 9, Trump had posted to Truth Social that it was a great time to buy.
What to Know
“There was no insider trading at the White House,” Kevin Hassett, director of the National Economic Council, said in an interview with Fox Business’s Maria Bartiromo on Monday morning.
“But I can say that when there are big movements in markets, there are people around town that investigate and make sure that nothing funny was happening.
“The issues will be investigated by the right officials, but I’m sure it’s not anything to do with the White House.”
Ahead of Trump’s announcement that he would pause his reciprocal tariffs on all but China for 90 days, allowing time for negotiations, the S&P 500, Nasdaq Composite Index, and Dow Jones Industrial Average were down by several percent, having shed trillions of dollars in value.
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Investors foresaw a recession due to Trump’s trade war, and a huge global sell-off ensued. But Trump’s pause sent stocks surging by several percent again as investors returned on the news, adding back earlier losses.
On April 9, the S&P 500 alone closed up 9.5 percent, marking one of its strongest performances in years. It had previously fallen more than 10 percent when Trump announced his tariffs.
“THIS IS A GREAT TIME TO BUY!!!” Trump posted on Truth Social hours before announcing that he had paused his reciprocal tariffs.
Spencer Hakimian, the founder of Tolou Capital Management, noted on X that the “NASDAQ call volume spiked minutes before the 90 day tariff pause was announced. Not a good look at all.”
What Is Insider Trading?
Insider trading is buying or selling a company’s securities based on private information that could impact an investor’s decision to buy or sell a security.
Some insider trading is legal if it complies with rules set by the U.S. Securities and Exchange Commission (SEC), but illegal insider trading can result in serious fines.
Lawmakers are allowed to buy and sell stocks, but they are required by the Stop Trading on Congressional Knowledge Act to publicly disclose any stock trades valued over $1,000 within 45 days of the transaction.
The STOCK Act also prohibits members of Congress and other government employees from using nonpublic information for private profit.
Market manipulation, on the other hand, is when someone artificially affects supply and demand by rigging prices or spreading false information.
What People Are Saying
Senator Adam Schiff, a California Democrat, said in a video statement: “Look, this is a president who is trading in his own meme coin even as he’s president, his kids are trading in their own cryptocurrency. You’ve got people like Elon Musk who are doing their own conflicted self-dealing in the administration.
“In any administration this corrupt it is more than necessary to ask, were people personally profiting from insider information while people’s savings, their retirement accounts were being torched?”
What Happens Next
The Democrats are still pushing for an investigation and plan to make inquiries in the coming days and weeks.
Update 4/14/25, 11:14 a.m. ET: This article was updated with additional information
