SPXT - How Volcker Fought Inflation In His Own Words And Why Today's Fed Has No Chance

• St. Louis Fed president James Bullard admits the Fed is out of position to fight price inflation and may be forced to chase, which would be very disruptive for markets.
• He says that the Fed would have to stop asset purchases and hike rates to above "whatever the neutral policy rate is."
• But that's not how Paul Volcker conquered inflation when he had to chase it back in 1979. Volcker targeted money supply directly, using interest rates for that stated goal.
• Volcker knew the dollar was in existential crisis at the time and said this explicitly. He also knew there was a crisis of confidence in the Fed, something today's Fed doesn't seem to understand.
• Volcker had doubts, but he had the tools to chase price inflation down. Today's Fed does not, and does not understand the situation it is in.

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