In his 2018 memoir, Keeping At It (The Quest for Sound Money and Good Government), Paul Volcker describes an awkward meeting in the White House during the summer of 1984. The year prior, President Ronald Reagan reappointed Volcker to second term as chairman of the Board of Governors of the Federal Reserve System (President Jimmy Carter first appointed Volcker in 1979). Reagan summoned Volcker for a meeting and upon arrival, the Fed chairman was led to the informal library (a surprise given the Oval Office was typical).
President Reagan and his Chief of Staff Jim Baker were waiting - while Reagan sat quietly, Baker delivered a clear message: “The president is ordering you not to raise interest rates before the election.”
Volcker describes his reaction: “I was stunned…I walked out without saying a word.”
Later in the recollection Volcker notes he surmised the informal library was chosen as it likely lacked a taping system (the meeting would go unrecorded).
Volcker concludes the story, “…it was a striking reminder about the pressure that politics can exert on the Fed as elections approach.”
Given the upcoming election cycle, Issue 6 dives into public REIT performance across presidential administrations and Federal Reserve chairman - should the party in power determine your investing strategy? Issue 6 also looks at net lease spin-offs and provides an updated Deal Sheet.
Thanks for reading!
Cheers,
Sean
