Trump's attacks on the Fed may be intense, but they're nothing compared to a wild new story about Ronald Reagan from former Fed Chairman Paul Volcker

pulse

October 23, 2018 3:17 PM

President Donald Trump's public attacks on the Federal Reserve have been eye-catching. But a new sotry from former Fed Chairman Paul Volcker is perhaps even more shocking.

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President Donald Trump has come under fire recently for breaking with presidential traditions and attacking the Federal Reserve over their recent interest rate hikes.

Trump renewed the attacks on Tuesday during an interview with the Wall Street Journal, bashing Fed Chairman Jerome Powell and attacking the Fed as the "

But Trump's public tantrums are nothing compared to a new recounting from former Fed Chairman Paul Volcker, who recalled intense pressure from President Ronald Reagan in the run up to the 1984 election.

In a new memoir, according to The New York Times, Volcker said he was called to the White House to meet with Reagan and Chief of Staff .

Volcker is best known for the "Volcker Shock," a rapid increase in interest rates in 1980 that helped tame the long-running inflation problem from the 1970s while also contributing to the recession that began in 1981.

It appeared that Reagan did not want a similar tightening cycle, which would have choked off economic growth, prior to his reelection campaign. According to Volcker, Reagan did not say a word, but Baker delivered a strong message.

The story also jumps out given Reagan's public reluctance to comment on Fed actions during his tenure.

For instance, when asked about Volcker's shifts during a press conference in 1982, Reagan replied: "'I can't respond to that because the Federal Reserve System is autonomous." In the same press conference, Reagan said there was "no way I can comment" on calls for Volcker's resignation.

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