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Volcker called for more exchange rate stability.

The Federal Reserve Board chairman said intervention by major nations can “correct serious exchange rate imbalances,” but he added that experience over the years has shown that the effect of intervention is likely to be fairly small and transitory unless part of a larger economic strategy. Separately, Volcker voiced his opposition to a provision in a House-passed tax reform bill that would eliminate the bad-debt reserve deduction for large banks.


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