President Donald Trump’s January 2026 threats to invoke the Insurrection Act amid protests in Minnesota over intensified ICE operations and a fatal shooting of a local resident by a federal agent remain the dominant recent development shaping trader views. Those statements followed a DHS surge of thousands of immigration agents and clashed with state lawsuits and local resistance, reviving debate over the rarely used 1807 statute’s broad authority to deploy active-duty forces for domestic law enforcement. Congressional efforts to narrow the law’s criteria and require legislative approval, introduced in 2025, add procedural uncertainty. Traders weigh continued large-scale enforcement actions and any resulting unrest against the absence of invocation through mid-2026 and institutional checks that have historically limited its use.