Senator Adam Schiff expressed on Wednesday the need for Congress to investigate whether President Donald Trump participated in insider trading or market manipulation when he unexpectedly halted an extensive set of tariffs, an action that resulted in a significant surge in stock prices.
“I’m committed to uncovering the truth,” Schiff, a Democrat from California, told TIME. “Family meme coins and other ventures are not exempt from insider trading or self-enrichment. I aim to have clarity soon.”
Schiff’s proposal for a formal investigation, a point that had not been reported before, followed shortly after the S&P 500 experienced a rally of more than 9% on Wednesday afternoon after Trump announced the pause on tariffs. “THIS IS A GREAT TIME TO BUY!!!” Trump proclaimed on Truth Social shortly after the market opened on Wednesday, featuring the letters “DJT,” which represent his initials and also the ticker for his media firm.
The White House did not respond promptly to a request for comment.
Schiff is the first Senator to explicitly call for a congressional investigation into possible insider trading by the Trump Administration following the President’s sudden change on the new tariffs. Such inquiries typically fall under the authority of significant congressional committees, like the Senate Judiciary Committee or the Senate Finance Committee, both led by Republicans—Senator Chuck Grassley of Iowa and Senator Mike Crapo of Idaho—who have generally steered clear of clashes with the White House. Individual lawmakers like Schiff can pursue investigations with their personal staff, although these would lack the power to issue subpoenas.
Nevertheless, the timing of Trump’s announcement—and the resulting market surge—has sparked suspicion on Capitol Hill. “When even my barber is questioning if Donald Trump is short-selling or trying to profit himself, it indicates that many are quite skeptical of what’s unfolding,” said Sen. Tim Kaine, a Democrat from Virginia, to TIME.
Read more: In Congress, Trump’s Tariff Pullback Sparks Relief, Frustration, and Suspicion
Sen. Tina Smith of Minnesota remarked to TIME when asked if Trump should be investigated for possible market manipulation: “That’s an excellent question. He certainly had much to gain. It’s something I hadn’t considered.”
Earlier on Wednesday, Rep. Steven Horsford, a Democrat from Nevada, was among the first to question whether the tariff halt was linked to market manipulation, which surfaced during an intense hearing with Trump’s trade representative, Jamieson Greer, who staunchly defended the tariffs. Horsford exclaimed, “This is amateur hour. You just got the rug pulled out from under you.” He demanded to know if the administration had intentionally swayed the markets. “This isn’t a game. This is real life,” Horsford stated.
The market reacted rapidly and positively to Trump’s decision, with stocks soaring more than 7% within minutes of the announcement, ultimately finishing over 9% higher. Bond yields, which had been on the rise due to fears of an economic downturn, relaxed. Oil prices, which had also been declining, recovered.
Treasury Secretary Scott Bessent, a former hedge fund manager, mentioned that the tariff pause was intended to create room for tailored negotiations with allies. “The only assurance we can provide is that the U.S. will negotiate in good faith,” he stated. However, Bessent also revealed that he and the President had discussed the decision extensively beforehand and that the move had been effective in “pushing China into a tough spot.”
Trump’s rationale, however, further fueled uncertainty. He referred to “yippy” people who were “afraid” and claimed he had been observing the bond market, describing it as “beautiful” after his announcement. He told reporters that “you must be flexible,” admitting that “in the past few days it seemed rather grim.”
Read more: Trump Wants to Spin His Tariff Pause as a Win. It’s Not.
Schiff perceives a pattern in Trump’s economic policies. “I believe what American business leaders need is certainty and predictability,” he remarked. “They are receiving anything but that. Americans who’ve seen their retirement savings decimated need to be compensated.”
The Senator from California has been a staunch critic of Trump for a long time. He played the role of lead prosecutor during Trump’s first impeachment and was a key figure in the congressional response to the Justice Department’s investigation into Russia. Though he did not initiate the 2017 congressional inquiry into Trump’s connections to Russia, Schiff emerged as the most outspoken Democrat on the committee, raising alarms about Trump’s leanings toward autocratic leaders. Schiff was subsequently censured by a Republican-controlled House for his remarks during the investigation.
After Democrats took control of the House in 2018, Schiff played a major role in leading the impeachment of Trump over a pressure campaign involving Ukraine. Trump had threatened to withhold military assistance to Kyiv unless its president launched an investigation into Joe Biden. The House brought articles of impeachment against Trump for abuse of power, but the Republican-led Senate acquitted him.
