Word: volckerism
(lookup in dictionary)
(lookup stats)
Dates: during 1980-1989
Sort By: most recent first
(reverse)
That runaway expansion is forcing the Fed to make delicate decisions. Volcker could push interest rates up sharply to slow money growth, but that would risk aborting the seven-month-old recovery. A big jump in credit costs could also cripple the ability of such borrowers as Brazil and Mexico to repay their U.S. bank loans. "We're going through the moment of truth," says Republican Congressman Jack Kemp of New York, a leading critic of tight-money policies. "What the Fed does now will determine the fate of the economy for the rest of the year, perhaps longer...
...cameras rolled beneath the television lights, and nearly 200 standing onlookers strained to get a view. The object of all the attention was towering (6ft. 7½-in.) Paul Volcker, who was discussing the outlook for money growth and interest rates before a congressional committee that held hearings on his reappointment as Federal Reserve Board chairman. The rumpled, cigar-puffing Volcker has become the staid financial community's first superstar. So great was the interest in his remarks that the 3½-hour session had to be moved from the Senate Banking Committee Hearing Room to the cavernous Caucus...
...Volcker's appearance had aspects of high drama, even though his reappointment is certain, because he now faces what may be his toughest test as head of the Federal Reserve. The task: to slow down the growth of money without killing the economy's recovery. The money-supply measure known as M1, which consists of cash and bank checking accounts, has been growing recently at a blistering pace. The key indicator rose at an annual rate of 14.1% to $512 billion during the first half of the year, far above the Federal Reserve's target range...
...testimony, Volcker sought to reassure both those who worry lest the Fed overreact to the monetary growth and those who fear that it will do too little. He acknowledged that the Federal Reserve has been tightening over the past six weeks, and hinted that it will continue to do so. But he denied that the Federal Open Market Committee, the central bank's policymaking arm, had decided last week to clamp down hard on money. The day before Volcker testified, the twelve-member group completed a two-day meeting at which it determined guidelines for the next 18 months...
...President and Congress cannot compromise on a budget-cutting strategy, the fight against inflation will rest squarely on Paul Volcker. With his new mandate, he seems as determined as ever to continue the struggle. "We must recognize that we are still far short of price stability," says the chairman. "In fact, inflation is only back to the pace of 1971, which was judged so intolerable at the time that wage and price controls were imposed...