Market MakeHer Podcast

93. Fed Deep Dive, Part 4: The Price of a Political Fed and the Volcker Wake-Up Call


Listen Later

This is the era where the Fed found its backbone...and yeah, it was messy.

We start with how the Fed pegged interest rates during World War II to keep government borrowing cheap, which meant it couldn’t raise rates, even as inflation hit 20% in 1947. Yeah… not ideal. That moment of tension led to the 1951 Treasury-Fed Accord, where the Fed basically said, “We need boundaries.” And just like that, monetary policy and politics went on a much-needed break.

But the real story relevant to today? The 1970s. Enter: stagflation... a nightmare mix of high inflation and high unemployment. And then comes Paul Volcker, the Fed Chair who didn’t just adjust rates, he detonated them. He ditched the traditional playbook and targeted the money supply instead of interest rates, sending borrowing costs through the roof to crush inflation expectations. Two back-to-back recessions followed… but inflation finally came down. And the Fed? It got its credibility back.

It was controversial, painful, and totally necessary. And now, with inflation heating up again, you can see why Papa Powell idolizes Volcker, because price stability isn’t just one goal. It’s the foundation for everything else.

So if you’ve ever wondered why the Fed is allergic to political pressure, why it fights inflation so hard, or why mortgage rates are making you cry, this episode explains exactly how we got here.

The big takeaway?

 ✨ The Fed learned that price stability is the foundation of everything else: jobs, growth, and economic confidence.

 ✨ And history shows us what happens when the Fed’s priorities get steered by politics instead of policy.

Support the show

Ask Us a Question, Leave a Review, Follow, Subscribe:
🔗All Market MakeHer Links
👀 ⁠ ⁠⁠YouTube Channel⁠⁠⁠
✨ Jess Inskip:
⁠TikTok⁠ ⁠Instagram⁠
✨ Jessie DeNuit:
⁠TikTok⁠ ⁠Instagram⁠
Funny Finance Shirts and Merch

About Us
🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...

...more
View all episodesView all episodes
Download on the App Store

Market MakeHer PodcastBy Jessica Inskip and Jessie DeNuit

  • 4.9
  • 4.9
  • 4.9
  • 4.9
  • 4.9

4.9

147 ratings


More shows like Market MakeHer Podcast

View all
Money Guy Show by Brian Preston and Bo Hanson

Money Guy Show

3,170 Listeners

Mad Money w/ Jim Cramer by CNBC

Mad Money w/ Jim Cramer

4,086 Listeners

Investing Insights by Morningstar

Investing Insights

497 Listeners

Your Money, Your Wealth by Joe Anderson, CFP® & Alan Clopine, CPA of Pure Financial Advisors

Your Money, Your Wealth

778 Listeners

Retirement Answer Man by Roger Whitney, CFP®, CIMA®, RMA, CPWA®

Retirement Answer Man

1,290 Listeners

NerdWallet's Smart Money Podcast by NerdWallet Personal Finance

NerdWallet's Smart Money Podcast

752 Listeners

Stay Wealthy Retirement Podcast by Taylor Schulte, CFP®

Stay Wealthy Retirement Podcast

640 Listeners

BiggerPockets Money Podcast by BiggerPockets

BiggerPockets Money Podcast

3,054 Listeners

Suze Orman's Women & Money (And Everyone Smart Enough To Listen) by Suze Orman Media

Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

4,421 Listeners

The Long View by Morningstar

The Long View

885 Listeners

Ready For Retirement by James Conole, CFP®

Ready For Retirement

793 Listeners

Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance) by Ari Taublieb, CFP®, MBA

Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance)

540 Listeners

Personal Finance for Long-Term Investors - The Best Interest by Jesse Cramer

Personal Finance for Long-Term Investors - The Best Interest

113 Listeners

Rich Habits Podcast by Austin Hankwitz and Robert Croak

Rich Habits Podcast

404 Listeners

Your Money Guide on the Side by Tyler Gardner

Your Money Guide on the Side

678 Listeners