Since Donald Trump resumed his role at the White House, U.S. investors have experienced a series of surprises—one after another—making it increasingly difficult to provoke a significant reaction. Announcements that previously would have caused major market disruptions, such as the president proposing a 50% tariff on copper or a 30% tariff on the European Union, now barely raise eyebrows. On July 16th, there was an unusual exception when Mr. Trump appeared to consider removing Jerome Powell, the head of the Federal Reserve. Even then, the market response was relatively subdued: Treasury yields rose slightly, and the dollar weakened. However, Mr. Trump quickly changed his stance, and markets returned to usual patterns. The following day, U.S. stock exchanges reached record highs.
