Paul Volcker

Paul A. Volcker, an influential American economist and chairman of the Federal Reserve, was born on September 5, 1922.

Paul Adolph Volcker was born on September 5, 1927, in Cape May, New Jersey, U.S. He later became an influential American economist and banker.

Paul Volcker earned a bachelor of arts degree, summa cum laude, from Princeton University in 1949.

Paul Volcker earned a master of arts degree in political economy and government from the Harvard University Graduate School of Public Administration in 1951.

Paul Volcker joined the New York Fed as an economist in the research department in 1952.

In 1962, Paul Volcker joined the Treasury as Director of the Office of Financial Analysis.

In 1963, Paul Volcker took on the position of deputy undersecretary for monetary affairs, contributing significantly to the management of monetary policies and affairs.

From 1969 to 1974, Paul Volcker served as Undersecretary of the Treasury for Monetary Affairs.

In August 1971, President Richard Nixon announced a series of economic measures, including ending the convertibility of the United States dollar into gold, which came to be known as the Nixon Shock.

In 1974, Paul Volcker joined Princeton as a visiting fellow, contributing to academic and research activities at the university.

Paul Volcker became the President of the Federal Reserve System on August 1, 1975. He also served as the vice chairman of the FOMC during his tenure.

On August 6, 1979, Paul Volcker was appointed as the Chairman of the Federal Reserve by President Jimmy Carter, where he implemented policies to combat inflation.

Paul Volcker speaks to a group of people demonstrating against the high interest rates outside the Federal Reserve building in Washington, DC.

Another recession was sparked in July 1981 due to the Fed tightening again, leading to a more severe economic downturn with unemployment peaking at 10.8 percent in December 1982.

Unemployment peaked at 10.8 percent in December 1982 during the 16-month second Volcker recession, reaching a higher level than at the peak of the Great Recession in 2009.

Paul A. Volcker was reappointed for a second term as Chairman of the Board of Governors of the Federal Reserve System on August 6, 1983, reflecting the confidence in his leadership and policies.

Paul Volcker, an American economist and chair of the Federal Reserve, testified before the House Banking Committee in Washington, DC on February 19, 1986.

Paul A. Volcker concluded his impactful tenure as Chairman of the Board of Governors of the Federal Reserve System on August 11, 1987, leaving a lasting legacy in the realm of monetary policy.

After leaving the Board of Governors, Volcker became the chair and part owner of James D. Wolfensohn, an international financial services firm.

In November 2008, U.S. President-elect Barack Obama selected Paul Volcker to chair the Economic Recovery Advisory Board in response to the global financial crisis. Volcker pushed for tougher financial regulations, leading to the incorporation of the Volcker rule into the financial reform legislation passed in 2010.

Paul Volcker served as a chairperson of President Obama’s Economic Recovery Advisory Board from 2009 to 2011. During this time, he made a significant contribution to the Dodd-Frank Wall Street Reform and Consumer Protection Act by introducing the “Volcker Rule” which prohibits banking entities from engaging in proprietary trading in securities, derivatives, or certain other financial instruments and from investing in, sponsoring, or having certain relationships with a hedge fund or private equity fund.

The Volcker rule, proposed by Paul Volcker to restrict banks from engaging in proprietary trading and limit the size of their private equity and hedge fund investments, was incorporated into the financial reform legislation passed in 2010.

In January 2011, Paul Volcker announced that he would be stepping down as head of the Economic Recovery Advisory Board.

In 2013, Paul Volcker founded the Volcker Alliance, a nonprofit organization with the goal of improving the government.

In 2018, Paul Volcker co-wrote the autobiography Keeping at It: The Quest for Sound Money and Good Government.

Paul Adolph Volcker passed away on December 8, 2019, in New York City, New York, at the age of 92. He was known for playing a key role in stabilizing the American economy during the 1980s as the chairman of the board of governors of the U.S. Federal Reserve System.