Paul Volcker was chair of the U.S. Federal Reserve when aggressive interest-rate increases helped end the high inflation of the early 1980s.
Volcker became Federal Reserve chair in August 1979. Under his leadership, the Fed placed greater emphasis on controlling money growth and inflation, allowing short-term interest rates to rise sharply. The policy contributed to severe recessions in 1980 and 1981–1982.
Inflation fell substantially afterward, helping restore confidence that U.S. price increases would not remain permanently high. The process was costly: unemployment rose above 10 percent in late 1982, and interest-sensitive industries such as construction and manufacturing suffered.
Volcker’s record is often discussed alongside the “Volcker shock,” the broader period of restrictive monetary policy. He was not the only cause of falling inflation, but his Federal Reserve leadership was central to the disinflation episode.