The Federal Reserve engineered a recession to reduce out-of-control inflation under
A) Arthur Burns.
B) Paul Volcker.
C) Alan Greenspan.
D) Ben Bernanke.

Question

Quizplus · Accepted Answer

Paul Volcker. He was the Chairman of the Federal Reserve in the late 1970s and early 1980s when inflation in the United States had spiraled out of control. In order to combat this, he implemented a tight monetary policy that included raising interest rates to historic highs, which in turn led to a severe recession. While this policy was controversial at the time, it ultimately succeeded in bringing inflation down to more manageable levels.

The Federal Reserve Engineered a Recession to Reduce Out-Of-Control Inflation