Volcker

Volcker is most often used to refer to Paul Adolph Volcker (1927–2019), an American economist and public servant who was the chairman of the U.S. Federal Reserve from 1979 to 1987.

As Fed chair, Volcker pursued a policy of disinflation through highly restrictive monetary policy, raising the federal funds rate to very high levels in order to combat stubborn inflation. The approach contributed to a severe recession in the early 1980s but succeeded in bringing inflation under control and restoring price stability, albeit after significant economic hardship for some sectors.

After leaving the Fed, Volcker advised governments and served in public service roles. He chaired the Economic Recovery Advisory Board under President Barack Obama from 2009 to 2011, advising on policy measures in the wake of the Great Recession.

The name Volcker is also attached to the Volcker Rule, a set of provisions enacted as part of the Dodd-Frank Act in 2010. The Rule limits the ability of banks to engage in proprietary trading and to own or invest in certain riskier funds, aiming to reduce conflicts of interest and risk in the financial system.

Volcker remained active in public affairs and policy discussions later in life. He is widely recognized for shaping central banking and financial regulation in the United States.