US Federal Reserve boss Jerome Powell
(Picture: REUTERS)In 1979, with inflation at 11% and rising, newly appointed Federal Reserve chairman Paul Volcker called a surprise Saturday press conference in October to announce he was shaking up the central bank’s plans to get a handle on rising prices.
Within a year, the US interest rate was at 20%. The shock tactics triggered a recession and sparked protests but ultimately curbed rising prices and helped set the stage for a few decades of prosperity.
