Former Federal Reserve Chairman Paul Volcker passed away last week. Volker was appointed by President Jimmy Carter, but served most of his term under President Ronald Reagan. Volker was best-known for fighting inflation with interest rate hikes. At the peak, Volker pushed rates all the way to 20%.
Peter talked about Volcker in a recent podcast, noting that he was credited with slaying the inflation monster that today’s Fed seems happy to resurrect.
Volcker took a lot of heat from officials in government for allowing rates to rise so high. Peter said that notably, Reagan was not critical of Volcker’s strategy.
Unlike Donald Trump, Ronald Reagan stood by Paul Volcker. He was his ally and he never criticized Volcker for high interest rates where everybody else was criticizing him, from Main Street, to Wall Street, to the Capitol, but Reagan stood by his Fed chairman.”
In hindsight, Volcker has a lot of respect. Peter said he was the last decent Fed chairman.
I wish he had been a little more critical of his predecessors, but there’s some kind of unwritten rule among Fed chairmen that you never speak ill about anybody who has the job after you. But I wish he had, because I’m sure he had some ill-will, he had some feelings that we were making mistakes, and he could have been more vocal in his criticism.”
Jerome Powell opened up his press conference at the conclusion of last week’s FOMC meeting with a tribute to Volcker. Powell talked about how the former Fed chair slew inflation. Peter called the tribute “ironic.”
…click on the above link to read the rest of the article…