United States: The risk of a lack of coordination between fiscal policy and monetary policy

There is a risk of now seeing in the United States a repeat of a situation already s een in the early 1980s with Ronald Reagan and Paul Volcker: a lack of coordination between fiscal policy and monetary policy. The Trump administration wants to conduct an expansionary fiscal policy at full employment, to try to extend the expansion period; but this situation of overheating could lead the Federal Reserve to adopt a more restrictive monetary policy, leading to a lack of coordination between the two policies. Such a remake of the early 1980s could lead to an excessive fiscal deficit in the United States, high interest rates, an overvaluation of the dollar and a weakening of growth.