"By the time I became chairman and there was more of a feeling of urgency, there was a willingness to accept more forceful measures to try to deal with the inflation"

Paul A. Volcker, a previous chairman of the Federal Reserve, made considerable contributions to the U.S. economy during a troubled period defined by high inflation and economic volatility. This quote reflects on his tenure and the context in which he ran.

Volcker's leadership came at a crucial point when the U.S. was facing relentless inflation. Prior to his chairmanship, the economy dealt with "stagflation"-- a mix of stagnant development and high inflation-- which conventional monetary policy tools had a hard time to resolve. By the late 1970s and early 1980s, there was a growing consensus that extreme measures were necessary. As Volcker notes, there was a "sensation of urgency", indicating a shared understanding amongst policymakers and economic stakeholders that the inflationary spiral needed to be cut decisively to bring back stability and development.

The quote implies an evolution in both economic agreement and policy desire. At first, more moderate or conventional methods might have been preferred to avoid possible social and financial disruption. However, as inflation continued and potentially sped up, the dangers and expenses associated with inaction became more prominent, promoting a readiness to welcome more aggressive strategies.

Volcker's "strong procedures" mainly involved tightening monetary policy through considerable rates of interest hikes. This approach, though questionable, aimed to lower the cash supply and curb spending, therefore controlling inflation. By increasing rate of interest, obtaining became more pricey, causing decreased usage and investment. Although at first painful, with repercussions such as increased unemployment and a recession, these procedures eventually prospered in bring back rate stability.

Volcker's position and the outcomes show a turning point in monetary policy history. His tenure underscored the importance of central bank self-reliance and the willingness to make difficult decisions for long-term economic health. His actions laid the groundwork for cost stability that benefited the U.S. economy in subsequent years.