2min chapter

Planet Money cover image

Two Indicators: Inside the Fed, then and now

Planet Money

CHAPTER

Why Did Arthur Burns Underburn the Fed?

Arthur Burns wanted low interest rates to stimulate the economy and boost his reelection prospects for 1972. Chris says not only did Arthur Burns worry about causing a recession, but he also wanted other parts of government to pitch in on the inflation problem. And this trade-off between corralling inflation and risking a recession is also the debate that's taking place today.

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