Donald and Jerome’s Excellent Economic Adventure

Rising trade tensions and stimulative fiscal policy are similar to what would be seen in a recession while the Fed continues to tighten policy, creating an unusual situation

With business growing briskly and the unemployment rate low, the U.S. economy is in good shape. Federal Reserve policy makers, therefore, had no qualms about raising interest rates on Wednesday, as well as projecting that they will be more aggressive in the future.

In contrast, other officials in Washington have taken the types of steps you might expect to see if the economy were battling a recession.

First,...