Paul Volcker, the former head of the US central bank who was known for fighting inflation, has died at the age of 92. Appointed chair of the Federal Reserve in 1979, Mr Volcker dramatically raised interest rates to combat inflation.
Mr Volcker’s tenure at the top of the Fed ended in 1987. More recently he had advised former US President Barack Obama on bank regulation following the financial crisis, overseen the return of money to Holocaust victims, and investigated a United Nations oil for food programme.
The move drove the US into recession, but was credited with creating the conditions for long-term growth. It also helped to burnish the bank’s reputation for independence.US Fed chairs through the ages
His life exemplified the highest ideals – integrity, courage, and a commitment to do what was best for all Americans. He also had a reputation for delivering blunt truths. In order to reduce inflation, he warned the US Congress “The standard of living of the average American has to decline”. I don’t think you can escape that.
Born in 1927 in New Jersey, Mr Paul Volcker was educated at Princeton, Harvard and the London School of Economics.