Powell highlights Volcker's integrity and inflation fight legacy
Federal Reserve Chair Jerome Powell received the Paul A. Volcker Public Integrity Award, reflecting on Volcker's legacy of selfless public service. Powell highlighted Volcker's courageous fight against double-digit inflation in the early 1980s.
Volcker's defining inflation battle
Paul Volcker exemplified integrity in public service, serving at the Treasury under three presidents—Kennedy, Johnson, and Nixon—before leading the Federal Reserve from 1979 to 1987.
His defining test came in confronting double-digit inflation in the early 1980s.
Despite political pressure and a painful recession, he held firm to his commitment to bring inflation down.
In a May 19, 1982, speech, with unemployment above 9 percent, Volcker acknowledged the pain of high interest rates but held out the prospect of price stability.
He is credited with achieving this future, launching an era of low and stable inflation and steady growth known as the Great Moderation.
Integrity as bedrock of public service
Chair Powell emphasized that non-political, non-partisan service forms the bedrock of the Federal Reserve, a virtue Volcker embodied.
Volcker's willingness to resist short-term pressures for lasting price stability demonstrated the courage and long-term perspective defining principled public service.
His actions remind us that independence and integrity are inseparable: independence is needed to do what is right, and integrity is needed to use that independence wisely.
Powell concluded by stating that ultimately, each public servant will want to look back and know they did the right thing, as Volcker showed, 'our integrity is all we have.
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Source: Powell, Acceptance Remarks
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