Going through mounting strain to roll again price hikes, together with protests by farmers and automobile sellers together with bipartisan political intervention, the Federal Reserve yielded. As unemployment exceeded 7% in Could, the Fed selected to considerably decrease the federal funds price, though inflation had reached a staggering 14.7% in April. This transfer tarnished Volcker’s status as a champion towards inflation, and all through the rest of 1980, inflation endured at over 12%.
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