Past US presidents’ Fed pressure raised inflation – NBER paper

Nixon-era evidence points to major impact on price level from “political pressure shocks”

Arthur Burns
Arthur Burns is widely thought to have given in to pressure from Richard Nixon to ease monetary policy

Political pressure on the Federal Reserve tends to be more inflationary than standard monetary easing, research published by the US National Bureau of Economic Research finds.

Author Thomas Drechsel develops an approach to estimating “political pressure shocks” based on records of meetings between Fed chairs and US presidents. He uses transcripts from 1933 until 2016.

In his working paper, Drechsel focuses on the presidency of Richard Nixon as an identification strategy, as it was a period when

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account