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- Ultimately, it took a crackdown by cigar-chomping Fed chairman Paul Volcker to break the cycle of rising prices and wages. Volcker slammed the brakes on the economy by raising interest rates to 20% — tough medicine to prove he was serious about getting inflation under control.
www.npr.org › 2022/09/29 › 1125462240Memories of the 1970s haunt the Fed, pushing its aggressive ...
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Jul 13, 2022 · Explainers. Politics. How the Fed ended the last great American inflation — and how much it hurt. Forty years ago, the Fed pushed the economy into a recession to stop inflation. Here’s how it...
- Dylan Matthews
Aug 5, 2022 · The textbooks predict that when you raise interest rates high enough, an economy will sputter, and that’s what happened: The second Volcker recession began in July 1981 and lasted until...
Oct 30, 2021 · Volcker fought greater than 10% annual inflation rates with contractionary monetary policy and courageously raised the fed funds rate to 20% in March 1980. He briefly lowered it in June. When inflation returned, Volcker raised the rate back to 20% in December and kept it above 16% until May 1981.
- Kimberly Amadeo
Sep 29, 2022 · Volcker slammed the brakes on the economy by raising interest rates to 20% — tough medicine to prove he was serious about getting inflation under control.
In October 1979, Fed Chairman Paul Volcker announced new measures by the Federal Open Market Committee aimed at reining in the inflation that had afflicted the US economy for several years. Volcker's Announcement of Anti-Inflation Measures | Federal Reserve History
The combination of growing federal debt and high interest rates led to a substantial rise in federal net interest costs. The sharp rise of interest costs and large deficits led Congress to take some steps towards fiscal constraint.
Sep 22, 2022 · Prices had been rising at 9%, 11% a year. Which meant if you had saved a pile of money for retirement, that pile bought less and less. SILBER: The inflation was really debilitating. You had to...
