With inflation still at 10 percent, the Fed doubled the Fed funds rate from 10.25 percent to 20 percent in March 1980. The Fed kept this rate until May 1981. It ended inflation but created another recession lasting from July 1981 until November 1982. Not just another ordinary recession but the worst one since 1929. Unemployment hit 11 percent overall. In manufacturing, unemployment was the cruelest with 75 percent of all job losses coming in the manufacturing industries. Crop prices fell, and corporate bankruptcies increased over 50 percent from 1981.
