RE:RE:Can Someone Explain Inflation emerged as an economic and political challenge in the United States during the 1970s. The
monetary policies of the Federal Reserve board, led by Volcker, were widely credited with curbing the rate of
inflation and expectations that inflation would continue. US inflation, which peaked at 14.8 percent in March 1980, fell below 3 percent by 1983.
[20][21] The Federal Reserve board led by Volcker raised the
federal funds rate, which had averaged 11.2% in 1979, to a peak of 20% in June 1981. The
prime rate rose to 21.5% in 1981 as well, which helped lead to the
1980–1982 recession,
[22] in which the national
unemployment rate rose to over 10%. Volcker's Federal Reserve board elicited the strongest political attacks and most widespread protests in the history of the Federal Reserve (unlike any protests experienced since 1922), due to the effects of high interest rates on the construction, farming, and industrial sectors, culminating in indebted farmers driving their tractors onto C Street NW in
Washington, D.C. and blockading the
Eccles Building.
[23] US monetary policy eased in 1982, helping lead to a resumption of economic growth.