Uday Kotak, Chief Executive, Mahindra Bank Box on Monday said the Chairman of the Federal Reserve As Jerome Powell ‘Company’ to fight inflation reminded him of the former US Central Bank Paul Volcker, who reversed inflation in the 70s/80s.

Chairman of the Federal Reserve Powell finally spoke strongly to fight inflation. Reminds us of Paul Volcker who broke the back of the US inflation in the 70s/80s. Be careful with quantitative tightening (QT). The US manages the world of finance. The opiated market will wake up and smell the scent of coffee! “He said in a tweet.

Federal Reserve Chairman Powell finally spoke firmly to fight inflation. Reminds us of Paul Volcker who broke the back of US inflation in 70s/80s. Watch out for Quantitative Tightening ( QT). US rules the financial world. Opiated markets will wake up and smell the coffee!

— Uday Kotak (@udaykotak) August 29, 2022

Volcker was the 12th chairman of the Federal Reserve from 1979 to 1987. During his term of office, he was widely credited for ending the high level of inflation seen in the US throughout the 1970s and early 1980s.

The box statement came a few days after Powell delivered a clear message on Friday which shows that Fed is likely to force an increase in greater interest rates in the coming months and firmly focus on taming the highest inflation in four decades.

Fed’s Powell, on Friday, said the US economy would need a strict monetary policy “for some time” before inflation was controlled.

Strict monetary policy “for some time” means slower growth, a weaker job market and “some pain” for households and business, he said in a speech for a central banking conference at Jackson Hole, Wyoming

Reducing inflation is likely to require a sustainable period of growth under the trend. In addition, it is likely that there will be some use of labor market conditions,” Powell said.