Ex-Fed Chief Paul Volcker Warns That '70s-Style Inflation Is Possible

Paul A. Volcker, former chairman of the Federal Reserve, warned on Wednesday the United States could face a 1970s-style period of skyrocketing inflation if investors lost confidence in the buying power of the dollar.

"If there is a real loss of confidence in the dollar, then I think we are in trouble. That is something that has to be watched," Mr. Volcker told the Congressional Joint Economic Committee.

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