Story thread · 2 reports / 2 sources

Has Trump Lost His Fear of Markets?

newrepublic.com · 12h · first reportShare

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 Trump’s “Liberation Day” tariff announcement in early April 2025, Trump chickened out, at least a little. Bond markets were “getting a little bit yippy,” he observed at the time. But now they’ve spiked to a 19-year high and (unless you count some dithering over a 50 percent Canada tariff ) Trump isn’t chickening out. Asked Wednesday whether Americans should worry about the bond market, Trump said , “No, I don’t think so.” TACO, RIP. There are all sorts of reasons the bond markets are going bonkers, not all of them having to do with Trump. Big Tech