A Policy Shift that Takes From the Poor and Gives to the Rich

I remember when I was working on my PhD in economics at Georgetown, one of my classmates actually called Paul Volcker and he just picked up the phone. He asked the FED Chairman about his monetary policy at that time and the fact that the prime rate was over 20%. The prime rate. They chatted for about fifteen minutes and the call became a legend in our program. But Paul Volcker’s monetary policy worked! He allowed the short-term pain to achieve the long-term gain, just as Pompliano noted in his article. I was just talking about this Federal Reserve shift in policy…...