Watch the VideoDr. Karen N. Horn became the sixth president of the Federal Reserve Bank of Cleveland in 1982 and the first woman president in the Federal Reserve System’s 69-year history.
As president, Horn successfully guided the Cleveland Fed through Ohio’s savings and loan crisis in the 1980s and was a strict defender of anti-inflationary monetary policy. She was a proponent of low inflation in recessionary times and was aware of the industry shifts occurring in the Fourth Federal Reserve District’s economy during her tenure. She also supported the Federal Reserve’s disciplined monetary policy position of raising interest rates, if necessary, to quell inflationary pressures. Horn opposed large federal spending deficits and cautioned about lessons learned in the 1970s regarding high inflation coupled with overly permissive monetary and fiscal policies.
