Word: volckerism
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Meanwhile, a series of surprising actions by the Federal Reserve in recent weeks suggests that Chairman Paul Volcker would like to see those volatile rates remain low in order to prevent the recession from getting any worse. The Fed has switched from a draconian clampdown on the growth of money all spring to a breathless 14.9% annual rate of increase in June. Moreover, it has begun cautiously lowering the levels to which it will let certain key interest rates sink. At the same time, the U.S. central bank, in a further effort to feed cash and credit back into...
...oldest traditions in politics for the governing party to cut taxes in an election year, but this year, the Carter Administration vowed, that would not happen. Absolutely not, declared Jimmy Carter. Absolutely not, vowed Treasury Secretary G. William Miller. Absolutely not, echoed Federal Reserve Chairman Paul Volcker. The great problem was inflation, the Administration said throughout the spring, and that required a balanced budget, and no tax cut. "I will not consider any reduction in taxes," said Carter last March, "until I am convinced that the 1981 budget will be balanced...
...recession-fighting measures go before they worsen the inflation that helped bring on the recession in the first place? Speaking to bankers in New Orleans last week, Treasury Secretary G. William Miller asserted that the Administration has "got to stay with fighting inflation as the No. 1 priority." Paul Volcker, chairman of the Federal Reserve Board, has indicated no relaxation of the board's tight squeeze on money supply. But the nation's central bank already has begun to dismantle the restrictions on consumer credit that it put on last March...
...least for now. Curbing the price explosion, even at the expense of a recession, has all along been the objective of the Federal Reserve's eight-month-old tight monetary policy. By steadfastly holding down the growth rate of the nation's money supply, Fed Chairman Paul Volcker has pushed interest rates to their highest levels in a century, slowed borrowing by businesses and individuals alike, and sent the housing and auto industries into a tail spin...
While almost all forecasters expect unemployment to grow, they predict only scant relief from high prices. Federal Reserve Chairman Paul Volcker sees a "reasonable prospect" that inflation may drop from the current 18% to about 10% before the end of the year. Then he quickly adds, "But that can only be a first step, and in some ways the easiest step, on the road to price stability." The last miles on the road back from inflation are sure to be the toughest ones...