Washington's economic intelligentsia are having the vapors Friday morning as President Trump is tweeting about Federal Reserve policy and the strength of the U.S. dollar in international markets. He's annoyed that the Fed is raising rates and that the stronger dollar is making our exports less competitive.
Yet both his tax cuts and trade war are contributing to these dynamics. You juice the economy at full employment with a deficit-financed, $2 trillion tax cut, and the Fed's naturally going to ramp up their concerns about overheating. At the same time, the extra fiscal impulse is leading to stronger U.