Paul Volcker, the former head of the US central bank who was known for fighting inflation, has died at the age of 92. Appointed chair of the Federal Reserve in 1979, Mr Volcker dramatically raised interest rates to combat inflation. The move drove the US into recession, but was credited with creating the conditions for long-term growth. It also helped to burnish the bank’s reputation for independence. Mr Volcker’s tenure at the top of the Fed ended in 1987. More recently he had advised former US President Barack Obama on bank regulation following the financial crisis, overseen the return of money to Holocaust victims, and investigated a United Nations oil-for-food programme.
“I am deeply saddened by the passing of Paul Volcker. He believed there was no higher calling than public service. His life exemplified the highest ideals–integrity, courage, and a commitment to do what was best for all Americans. His contributions to the nation left a lasting legacy. My colleagues and I at the Federal Reserve mourn this loss and send our condolences to his family”