Has Trump Lost His Fear of Markets?

Summary

Since January 2025, a reigning principle of global markets has been something called TACO. TACO stands for Trump Always Chickens Out, meaning whenever Trump does something stupid that creates financial instability, an adverse market reaction can be counted on to scare him into backing down. Until now TACO has kept the S&P 500 climbing to levels that make little economic sense. When 10-year Treasury bond yields spiked after President Donald...