MEMO BASED ON COVID INFO FROM WHITE HOUSE SPARKED STOCK SELL-OFFS

A memo based on information from senior White House officials in early 2020 conveyed to investors that the coronavirus pandemic was likely to be far more dire than President Trump’s public predictions, leading to stock sell-offs, The New York Times reported. 

On Feb. 24, the same day the president tweeted the virus was “very much under control,” White House economic staff met with board members of the conservative Hoover Institution, many of them GOP donors, and said the White House could not yet predict the virus’ effect on the economy, the Times reported, Zack Budryk reported for The Hill. 

Following the meetings, hedge fund consultant William Callanan wrote a memo noting that nearly every economic adviser had brought up the virus “as a point of concern, totally unprovoked.” As the document spread among investors, one said that their takeaway was “short everything.” In a separate Feb. 23 memo, White House trade adviser Peter Navarro warned the virus could kill up to 2 million Americans and that the US was not prepared for a pandemic. By Feb. 26, US markets had fallen nearly 300 points from the previous week. 

Trump told journalist Bob Woodward in February that the virus was considerably more deadly than the flu and that it was airborne and in later interviews said he was deliberately downplaying the threat of the virus to avoid causing panic. Several financial transactions in early February by Sen. Richard Burr (R-N.C.) are currently under investigation. Burr made the stock sales shortly after a government briefing about the threat of the virus, but he has denied any wrongdoing.