Looming Interest Rates Make You Wish For Jimmy Carter
Jimmy Carter's presidency nearly crippled this nation. With mortgage interest rates in the 20% range our economy was on the verge of collapse..For those who think that low interest rates will never end, the 1950's should be consulted. During August of 1955, interest rates for lending were 3.25% as well. Over time, they rose steadily to 10% in 1973 under President Nixon and topped out at over 20% at the end of President Carter's term
Volcker was Carter's second appointment to the Fed. His first appointment was G. William Miller. Under Miller, the CPI went from 4.9% in 1976 to 13.3% in 1979. Miller was Carter's first mistake. His next mistake was not allowing Volcker, a Nixon holdover, to run the Fed as it should have been.
Volcker did not clamp down on the money supply until after the 1980 election. Before that, Carter wouldn't allow Volcker to implement a tight money policy.
Carter was a mistake and a knee jerk reaction by the voters, just as Obama was in 2008.