About the Video
The inflation will end if the US Feds implement the Paul Volcker Strategy.
🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ https://www.interactivebrokers.com/mk...
⬇️Timestamps:
0:00 → Inflation is Not Transitory
1:43 → Who is Paul Volcker?
3:10 → Paul Volcker’s Strategy Breakdown
6:15 → Conclusion
Inflation has accelerated further in recent months, with prices rising 8.6% from May last year, making it the fastest increase since December 1981.
Federal Reserve Chairman Jerome Powell warned that getting inflation under control could cause some economic pain but remains his top priority, and that he couldn’t promise a so-called soft landing for the economy as the Fed raises interest rates to tamp down price increases running near their fastest pace in more than 40 years. With a tight labor market pushing up wages, avoiding a recession that often follows aggressive policy tightening will be a challenge.
Recalling back in March 1980, Paul Volcker fought greater than 10% annual inflation rates with contractionary monetary policy and courageously raised the fed funds rate to 20%. He briefly lowered it in June. When inflation returned, Volcker raised the rate back to 20% in December and kept it above 16% until May 1981.3 That extreme and prolonged interest rate rise was called the Volcker Shock. It did end inflation. Unfortunately, it also created the 1981 recession.
Desperate times call for desperate measures – will Jerome Powell choose to implement Paul Volcker’s strategy to end inflation once and for all?
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