Volcker Could Not “Volcker” in Today’s Financial Conditions
This most current Powell speech purposely conjures up the Fed’s biggest victory of years previous as well as the contrast suggests the present Fed can as soon as again ‘Volcker’ passion prices. By 1980 the fed funds price was at 20%, the highest possible in background. The boosted need pressed costs higher up until Volcker ended up being Fed Chair.
This most current Powell speech intentionally conjures up the Fed’s biggest accomplishment of years previous and also the contrast indicates the existing Fed might as soon as again ‘Volcker’ passion prices. By 1980 the fed funds price was at 20%, the highest possible in background. The Volcker shock functioned in the very early 1980s. The boosted need pressed rates higher till Volcker came to be Fed Chair. Volcker himself attended to issues regarding increasing federal government financial obligation in a 2016 op-ed in the New York Times.
