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Director of National Economic Council Larry Kudlow
- As the stock market dipped in late February in response to the coronavirus crisis, Trump and his top economic adviser, Larry Kudlow, were urging confidence in the markets.
- Kudlow told Fox Business on February 28 that there was no indication the coronavirus would "skyrocket" in the US. "Stocks looks pretty cheap to me," he added at the time.
- Only weeks earlier two Republican senators had dumped investments, after allegedly receiving briefings that the crisis would be worse than the White House was then admitting.
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A review of public statements by Trump administration officials urging confidence in the markets as the coronavirus spread reveals a stark contrast with the private behaviour of some GOP lawmakers.
While the president and his top economic adviser late February were urging Americans to show confidence in the stock market and invest as the coronavirus spread, at least two GOP senators had already privately dumped stocks - after receiving classified briefings on the damage likely to be caused by the disease.
"As #coronavirus hit, Kudlow kept saying stocks were cheap. If you had listened, you'd have lost 30% of your money But senators like Loeffler and Burr (who sold up to $1.7 million in stock before the crash) aren't like you and me. They get inside information - and trade on it," tweeted Chris Lu, Deputy Labor Secretary in the Obama administration.
Both lawmakers - Sen, Richard Burr and Sen. Kelly Loeffler - have denied suggestions of wrongdoing in relation to the sales.
The White House did not immediately respond to a request for comment.
Back on February 28 as fear gripped markets and share prices plunged, Larry Kudlow, the president's top economic adviser, told Fox Business that investors shouldn't "rule out more optimistic options."
There was no guarantee cases of the disease will "skyrocket" in the US, Kudlow said at the time, adding that: "Stocks looks pretty cheap to me."
In a tweet later that day Eric Trump, President Donald Trump's son, and an executive in the Trump Organization, said: "In my opinion it's a great time to buy stocks or into your 401k. I would be all in ... let's see if I'm right ..."
The message seems to have since been deleted.
Days earlier Trump in a tweet had sought to portray market downturns as an investment opportunity.
"The Coronavirus is very much under control in the USA. We are in contact with everyone and all relevant countries. CDC & World Health have been working hard and very smart. Stock Market starting to look very good to me!" tweeted the president on February 24.
Kudlow that day said investors should take advantage of the downturn and buy back in.
But we now know that lawmakers in Trump's own party were taking a very different course of action. At least two had been briefed with information from government officials on the likely devastating impact of the disease which contrasted sharply with the White House's optimistic messaging about the likely minimal impact of the virus.
Sen. Richard Burr, who receives regular classified briefings as chairman of the Senate Intelligence Committee, on February 13 dumped up to $1.6 million in stocks, ProPublica reported on Thursday - a week before the economic crisis worsened and markets tanked.
Burr's committee received a number of briefings and intelligence reports in January and February that included information about the growing coronavirus pandemic that was not made public, Senate aides have told NBC News.
Most of the stocks were in the hotel sector, which has been badly impacted by the crisis.
His spokesperson has said Burr's sales were made "several weeks before the US and financial markets showed signs of volatility" due to COVID-19. The statement did not address questions about what classified information Burr may have received ahead of making the sales.
Six days before his selling spree, Burr had echoed the president's optimistic picture about the likely impact of the disease, writing in an op-ed America is "better prepared than ever before to face emerging public health threats, like the coronavirus."
Associated Press
Sen. Richard Burr R-NC., sold more than $1 million of stocks in recent weeks.
Hours later The Daily Beast followed up with a report that Sen. Kelly Loeffler of Georgia, sold stocks on January 24, the same day that she and other lawmakers on the Senate Health Committee received a briefing on the likely impact of the disease from top administration officials, and then bought up stock in a company that sells teleworking software.
"Sen. Loeffler does not make investment decisions for her portfolio," a spokesperson for the senator told Business Insider.
"Investment decisions are made by multiple third-party advisors without her or her husband's knowledge or involvement."
But it's not just Republicans, with The New York Times reporting that Sen. Diane Feinstein of California and her husband sold of stocks worth millions before the markets collapsed. Feinstein is a ranking member of the Senate Judicial Committee.
"All of Senator Feinstein's assets are in a blind trust," the spokesman, Tom Mentzer, told the Times. "She has no involvement in her husband's financial decisions."
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As #coronavirus hit, Kudlow kept saying stocks were cheap. If you had listened, you'd have lost 30% of your money
But senators like Loeffler and Burr (who sold up to $1.7 million in stock before the crash) aren't like you and me. They get inside information - and trade on it https://t.co/ZyKHmZtrUD
- Chris Lu (@ChrisLu44) March 20, 2020The Dow is down 15% since Eric Trump tweeted "it's a great time to buy stocks." pic.twitter.com/QHlRsKaexn
- Matt McDermott (@mattmfm) March 13, 2020News: Kudlow spoke w/ Post after markets closed. Encouraged people to buy.
"The coronavirus will not last forever. The US looks well-contained and the economy is fundamentally sound," he told me. "If you're a long term investor, you should seriously consider buying these dips."
- Robert Costa (@costareports) February 24, 2020I want to set the record straight: This is a ridiculous & baseless attack. I don't make investment decisions for my portfolio. Investment decisions are made by multiple third-party advisors without my or my husband's knowledge or involvement.
- Kelly Loeffler (@KLoeffler) March 20, 2020