US financial circles are reeling after allegations of 'brazen corruption' were levelled against Donald Trump's media company, Truth Media + Technology Group (TMTG), over its proposed Truth PSI service. This initiative promises exclusive high-speed access to posts on its social media platform, Truth Social – including those from President Trump himself – for a price. Such expedited updates could give financial institutions and other entities a significant edge in predicting market shifts, potentially allowing them to profit from subsequent changes in stock, bond, and interest rates.
Kathleen Clark, an expert on government conflicts of interest at Washington University School of Law, has described the move as "yet more brazen corruption, an improper exploitation of government power to enrich himself." She highlighted that President Trump is set to benefit directly from the revenue generated by Truth PSI due to his status as the platform's most popular poster – with 12.9 million followers – and largest shareholder in TMTG.
President Trump has consistently used Truth Social to break significant news and express views on critical matters, including the Iran conflict, tariffs, and US immigration enforcement. His posts regarding the Iran situation have had a notable impact on markets due to investor concerns about rising oil prices fueling inflation and potentially prompting the Federal Reserve to increase interest rates.
The launch of Truth PSI comes as TMTG's stock has plummeted over 70% since President Trump took office, wiping an estimated £4.7 billion from shareholder wealth. This decline, combined with billions more in investor losses tied to new Trump family crypto ventures, has raised scrutiny, particularly after President Trump disclosed he generated over $1 billion in revenue last year from these companies and offerings.
Although US conflict of interest laws generally prohibit government officials from profiting from their office by selling access to their decisions, presidents and vice-presidents are exempt. However, all previous presidents have voluntarily adhered to the law's spirit, either divesting business holdings or placing assets in a blind trust. President Trump has declined to follow this precedent, raising questions about his commitment to transparency.
TMTG plans to launch Truth PSI next month, with its new CEO, Kevin McGurn, describing it as a "strategy to monetise proprietary assets" that will become a "meaningful, ongoing source of revenue." The move is likely to be closely watched by British investors, given the significant impact of US market fluctuations on the UK economy.