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.




New York Times | May 14, 2008 09:32 PM