Trump Keeps TACOing. What If Markets Stop Caring?
Bloomberg Markets and Finance
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January 29, 2026 at 05:31 PM UTC
Bearish
90% Confidence
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Key Points
- TACO theory (Trump's actions causing market volatility) is discussed in relation to recent presidential moves.
- Markets are showing less reaction to Trump's statements over time, requiring 'progressively crazier stuff' to get a response.
- This dynamic is described as an 'unstable equilibrium' that could lead to a 'Liz Truss-type dynamic' or 'driving the car over the cliff'.
AI Summary
The discussion centers on the 'TACO theory' (Trump's actions causing market volatility) in response to his recent policy moves. Panelists note a diminishing market reaction to his statements over time, suggesting an 'unstable equilibrium' where increasingly provocative actions are needed to elicit a response, potentially leading to a crisis akin to the 'Liz Truss-type dynamic'.
Model Analysis Breakdown
| Model | Sentiment | Confidence |
|---|---|---|
| Gemini 2.5 Flash | Bearish | 90% |
| Consensus | Bearish | 90% |