As former Chairman Paul Volcker put it at the height of the Great Inflation in 1979, ‘Inflation feeds in part on itself, so part of the job of returning to a more stable and more productive economy must be to break the grip of inflationary expectations.’

Source: https://www.forbes.com/sites/joshuapollard/2023/03/13/silicon-valley-bank-failed-on-friday-and-the-government-crafted-a-new-rescue-plan-on-sunday-here-are-4-things-that-small-banks-must-do-now/

In fact, this was a major problem that Paul Volcker confronted in the late 1970s and early 1980s.

Source: https://www.lewrockwell.com/2023/06/doug-french/after-the-debt-ceiling-deal-look-for-liquidity-problems-in-the-markets/

In the 1970s, Fed chairman Paul Volcker famously used monetary policy—specifically a campaign of rapid interest rate increases—to erode the bargaining power of labor as a means of taming inflation.

Source: https://phys.org/news/2023-09-delicate-central-bank.html

Paul Volcker proved that four decades ago when he pushed the real Fed funds rate north of 8.0% before he finally broke the inflationary momentum.

Source: https://www.lewrockwell.com/2023/05/david-stockman/why-grandma-yellen-must-be-forced-to-prioritize-spending/

The Volcker Rule additionally regulates monetary companies’ use of derivatives in an try to forestall “too large to fail” establishments from taking giant dangers that may wreak havoc on the broader financial system.

Source: https://www.mccourier.com/what-it-does-major-components-criticisms/