, Columnist
Volcker’s Lessons for Restoring Dented US Credibility
The legendary Fed chairman created a new order based on competent economic management.
What would Paul Volcker do?
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Two episodes from Paul Volcker’s long career in public service stand out as lessons for the Trump administration today. In 1971, Volcker helped end the postwar global financial order that was anchored by the price of gold in dollars. A disruptive decade later, at the helm of the Federal Reserve, he established a new order based on competent economic management.
Ever since, his legendary example has guided policymakers and sustained the world’s confidence in the dollar and Treasury securities. Now, a chaotically managed effort to restructure international trade appears to be denting that hard-won credibility.