Maestro — Prologue

1. 1. In summer 1984, White House Chief of Staff James Baker pressured Fed Chairman Paul Volcker to keep interest rates low ahead of Reagan's reelection campaign.
2. 2. Baker packed the Fed Board with Reaganauts who favored lower interest rates, eventually securing a 4-3 vote to cut the discount rate in February 1986.
3. 3. Volcker resigned in 1987 rather than seek reappointment, feeling the administration wanted a puppet and had undermined his independence.
4. 4. James Baker orchestrated Alan Greenspan's appointment as Fed chairman, viewing him as a team player who would coordinate policy with the White House.
5. 5. Greenspan initially doubted he wanted the Fed job, believing monetary policy was too complex and that being right 60% of the time would be fortunate.
6. 6. Howard Baker, Reagan's chief of staff, was tasked with feeling out Volcker's interest in a third term, suspecting Volcker might decline.