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

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

The September jobs report gave the mortgage market something it hasn't had much of lately: downward pressure on Treasury yields.U.S. employers added just 29,000 jobs in September, while the unemployment rate edged up to 4.2%, according to the Bureau of Labor Statistics. The ...

Wholesale

The Loan Store Rebrands As Averra Financial

The wholesale lender is adopting a new identity three years after acquiring Homepoint’s wholesale business and rising to No. 4 in industry rankings

The Loan Store has a new name after a three-year expansion that transformed the once-small wholesale lender into one of the largest players in the broker channel.The Tucson, Arizona-based lender has rebranded as Averra Financial Inc., effective immediately, the company annou...

Nov

Houston, TX

More from

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Analysis and Data

Oct 02, 2026

Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Analysis and Data

Oct 01, 2026

Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Analysis and Data

Sep 29, 2026

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Analysis and Data

Sep 25, 2026

Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Analysis and Data

Sep 25, 2026

Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Tech

Sep 23, 2026

Popular