Volcker Views U.S. as a ‘Hell of a Mess in Every Direction’

Oct 23, 2018

Former Federal Reserve Chairman Paul Volcker offered a harsh denunciation on the state of the nation, insisting that “we’re in a hell of a mess in every direction.”

In a New York Times interview published ahead of the Oct. 30 release of his autobiography “Keeping at It: The Quest for Sound Money and Good Government,” Volcker claimed that the foundations of the federal government are no longer viewed with admiration.

“Respect for government, respect for the Supreme Court, respect for the president, it’s all gone,” he said. “Even respect for the Federal Reserve. And it’s really bad. At least the military still has all the respect. But I don’t know, how can you run a democracy when nobody believes in the leadership of the country?”

In his book, Volcker recalled an effort by the Reagan Administration to prevent the Federal Reserve from raising rates. He noted a 1984 meeting in the library next to the Oval Office where President Reagan sat silently while Chief of Staff James Baker told him, “The President is ordering you not to raise interest rates before the election.”

“I was stunned,” Volcker stated, noting that he was not planning a rate hike at the time. “I later surmised that the library location had been chosen because, unlike the Oval Office, it probably lacked a taping system.”

Looking at the financial services industry through a post-Dodd-Frank spectrum, Volcker said the nation’s banks were “in a stronger position than they were, but the honest answer is I don’t know how much they’re manipulating.” He also opposed the notion of deregulating the financial services companies.

“Everybody talks about monetary policy,” he said, “but the lesson of all this is we need better, stronger supervisory powers.”

About the author

Phil Hall

Link copied

Published

Oct 23, 2018

Tech

Lorien AI Integrates With MeridianLink Mortgage

Integration brings conversational AI, document analysis, and underwriting guidance directly into the loan origination workflow

Lorien AI announced that its platform will be integrated with MeridianLink Mortgage, giving lenders access to conversational AI tools directly within the loan origination system.According to the company, the integration is designed to allow users to access underwriting guida...

C-Suite Strategies

UWM Lets Two Harbors Waiver Period Expire Without New Proposal

After a direct engagement period urged by shareholders, Two Harbors says UWM failed to submit a revised bid before the June 12 deadline

Two Harbors Investment Corp. said Monday that UWM Holdings failed to submit a revised acquisition proposal during a special engagement period designed to allow direct negotiations between the companies, prompting the mortgage REIT's board to once again unanimously recommend ...

Jul

New Orleans, LA

More from

Regulation and Compliance

MISMO Launches AI Governance Framework For Mortgage Lenders

New FRAME toolkit gives lenders, servicers, and technology providers a roadmap for managing AI risk while supporting innovation

Regulation and Compliance

Jun 11, 2026

CFPB Tells Lenders Immigration Status Can Factor Into ATR Analysis

CFPB frames immigration status as a potential ability-to-repay factor when future U.S.-based income is at risk

Regulation and Compliance

Jun 10, 2026

UAD 3.6 Deadline Nears; First American Earns Verification

First American's ACI Sky Workbench gains verification ahead of the Nov. 2 implementation date for the GSEs' updated appraisal reporting requirements

Regulation and Compliance

Jun 08, 2026

MISMO Introduces New Loan Boarding Standard

Wrapper Files support standardized data transfers between origination and servicing systems, with potential savings of $60 to $160 per loan

Regulation and Compliance

May 29, 2026

The GLBA Compliance Gap Your AI Deployment Just Opened

Old statutes, new models, and the vendor contract you signed before machine learning became operational

Regulation and Compliance

May 26, 2026

FHA Keeps Tri-Merge Credit Reports While Expanding Approved Scoring Models

HUD says FHA lenders will continue using three-bureau credit reports even as the agency adopts newer scoring models aimed at increasing competition and modernizing mortgage underwriting

Regulation and Compliance

May 26, 2026

Popular