Volcker Praises Greenspan: Former Federal Reserve Chairman...

Volcker Praises Greenspan: Former Federal Reserve Chairman Paul A. Volcker called inflation “a perpetual concern” and praised recent actions by the nation’s central bank to nudge up interest rates to combat rising prices. Volcker, speaking with reporters at the White House, voiced particular praise for the policies of the current Fed chairman, Alan Greenspan. As Fed chairman, Volcker earned a reputation as the government’s chief inflation fighter in the early 1980s when he pursued a policy of tight credit that drove up interest rates to halt double-digit inflation. For the first two months of 1989, inflation at the consumer price level has been rising at an annual rate of 6.1%. At the wholesale level, prices have been rising at a 12.6% annual rate. Greenspan has argued that higher interest rates are needed in the short run to keep a lid on inflation, a position at odds with President Bush.