The Fed Brought a Knife to an Inflation Gun Fight - Ep 873
The Peter Schiff Show Podcast
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What Did Paul Volcker Have to Do With Interest Rates to Get Inflation Back Down to 2 Percent?
When the 1970s began the Fed's funds rate was around 4 or 5 percent for all of 1970 it actually got as high as 9 and 3 quarters and as low as 3 percent during the year. By 1980 when Paul Volcker came in that year the average Fed funds rate was 13.35 percent by 1986 at 14.35 percent that's what it took to get inflation back down to 2 percent after fighting it for six years. The last time we had official inflation above 4 percent until 2021 where is the Fed funds rate today after all these rate hikes it's only at 4.6 percent that rate isn't even close to being high enough to rain in inflation.
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