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Keep at it volcker5/22/2023 He had the courage to do what he thought was the right thing. POWELL: Who isn't an admirer of Paul Volcker? I knew him just a little bit and have tremendous admiration for him. He's a role model for Powell, the first Fed chairman since Volcker to face inflation anywhere near that high. Volcker famously broke the back of inflation after a long stretch of sometimes double-digit price hikes in the 1970s. It also happens to be the title of Paul Volcker's autobiography. HORSLEY: In recent weeks, keeping at it has become a mantra for Powell. JEROME POWELL: We want to act aggressively now and get this job done and keep at it until it's done. Powell told reporters he and his colleagues will do whatever it takes to bring down inflation. SCOTT HORSLEY, BYLINE: Fed Chairman Jerome Powell acknowledged this week that the rapid rise of interest rates will cause some pain, including slower economic growth and possibly higher unemployment. It's the most aggressive series of rate hikes since the early 1980s, when a cigar-chomping bad cop named Paul Volcker was running the Fed. The central bank raised interest rates this week for the fifth time in six months. Now that it's facing stubbornly high inflation, the Fed has done an about-face and switched to bad-cop mode. For the first two years of the pandemic, the Federal Reserve played good cop, keeping interest rates near zero in an effort to prop up the economy.
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