What 1970s U.S. policy imposed price controls and a temporary wage freeze to fight inflation?

Nixon price controls were the 1970s U.S. policy that imposed price controls and a temporary wage freeze to fight inflation.

President Richard Nixon announced the first phase of the policy on August 15, 1971. It included a 90-day freeze on wages and prices, alongside measures affecting the dollar’s convertibility and international monetary arrangements. The freeze was intended to break inflationary expectations and provide time for a broader program.

Later phases replaced the freeze with increasingly flexible controls. The policy temporarily restrained reported price increases, but shortages, distortions, and enforcement difficulties appeared in some sectors. Inflation returned as controls were relaxed and energy prices rose during the decade.

These controls are distinct from the much later high-interest-rate strategy associated with Federal Reserve Chair Paul Volcker. They also differ from wartime rationing systems, which generally combine controls with direct allocation of scarce goods.