Former Federal Reserve chief Paul Volcker died at the age of 92, it was reported.
NPR reported that he had been suffering from prostate cancer before his death.
He was the chairman of the central bank under Presidents Jimmy Carter and Ronald Reagan.
“In terms of economic stability in the future, that [inflation] is what is likely to give us the most problems and create the biggest recession,” Volcker said in a 1979 Fed Open Markets Committee meeting before he became the Federal Reserve chairman, reported CNBC,
In 2018, he published a memoir “Keeping at It: The Quest for Sound Money and Good Government,” and he expressed concern about the direction of the federal government.
“The central issue is were developing into a plutocracy,” he told the New York Times in October 2018. “Weve got an enormous number of enormously rich people that have convinced themselves that theyre rich because theyre smart and constructive. And they dont like government and they dont like to pay taxes.”
Volcker was known best for using high interest rates to reverse decades of inflation. The U.S. farming and manufacturing sector was hardest-hit by the interest rates.
In the midst of it, Volcker was vilified by the public. Homebuilders put postage stamps on bricks and on two-by-four wooden planks and mailed them to the Fed to protest how super-high interest rates had wrecked their businesses. Auto dealers, stuck with lots full of unsold cars, did the same with car keys. Angry farmers, struggling with high debts, drove their tractors to Washington and blockaded the Feds headquarters.
“Ultimately, the only way, I think that just say flatly interest rates will be brought down and stay down is to get the inflation rate down,” he told a Senate Banking Committee hearing in 1981, NPR noted.