Volcker- Skelter

The Fed is now talking about the possibility to bring its policy stance in restrictive territory – and not just neutral – to tackle inflation. This is not a unanimous approach, as evidenced by Raphael Bostic’s call for a pause in September but these discussions about a painful tightening in monetary policy against a background of stubbornly high energy prices bring us back to Paul Volcker’s 1980 “inflation killing journey”.