How Volcker Launched His Attack on Inflation

When Paul Volcker took over as president of the Federal Reserve Bank of New York on Aug. 1, 1975, he became a permanent member of the Federal Open Market Committee, the panel within the Federal Reserve System responsible for managing credit conditions and interest rates.

The New York Times labeled him a “monetary pragmatist,” adding that he was “philosophically sympathetic” with Fed Chairman Arthur Burns, meaning “that he leans toward tight money policies and high interest rates to retard inflation.”