Current Fed Policies Puzzling to Ex-Fed Chairman Volker

If Fed policies have you scratching your head at times, you’re not alone. In his recent memoir, Paul Volker questions the use of an arbitrary inflation rate target, monetary policy as stimulus, and other current Fed policies.

Mr. Volcker is the the last Chair under whose tenure American savers could earn a decent rate of interest, the last Chair who demonstrated any meaningful political independence (clashing with presidents Carter and Reagan), the last Chair who really hated inflation, and the last Chair who eschewed the technocratic management of monetary policy.

He’s the last of the old-guard central bankers who saw monetary policy as a regulator and not a stimulus machine.

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