America Is Not an Island
As the world economy slows, Trump and the Fed need to adapt.
President Trump’s biggest achievement has been the revival of faster U.S. economic growth, but past performance is no guarantee of future results. The White House should be worried about growing economic strains in the rest of the world, and policy makers need to prepare. The U.S. is not an island.
For now the American economy and especially the labor market seem strong as tax reform and deregulation unleash animal spirits. But the German economy shrank 0.2% in the latest quarter, the first contraction since 2015. Europe's...