President Johnson imposed a military strategy on the conduct of the Vietnam war that was called:

Johnson finally relented, and Martin's refusal to back down is often considered one his strongest moments as Fed chairman. This is one of those few occasions where the Federal Reserve Board decision has to be final.'

'But I do have a very strong conviction that the Federal Reserve Act placed the responsibility for interest rates with the Federal Reserve Board. 'I've never implied that I'm right and you're wrong,' Martin said. Johnson was accustomed to getting his way - whether through bluntness or sweet-talking, as the occasion might require. 'You took advantage of me and I just want you to know that's a despicable thing to do.' 'You've got me in a position where you can run a rapier into me and you've done it,' charged Johnson, as recounted by Robert Bremner in Chairman of the Fed. Enraged, he called Martin and other top economic officials to his Texas ranch, where he was recovering from gallbladder surgery. But Johnson was adamant that higher rates would slow down the economy and compromise his domestic agenda. Fiscal stimulus - increased spending on the Vietnam War, expanded domestic programs for President Lyndon Johnson's 'Great Society,' and a tax cut enacted in 1964 - had raised inflationary warning signals for Martin and, increasingly, a majority of the Federal Open Market Committee (FOMC). had just convinced the Board of Governors to raise the discount rate amid signs that the economy was starting to overheat.

Fed Chairman William McChesney Martin Jr. Few challenges to the Federal Reserve's independence have ever matched the drama of Dec.

President Johnson imposed a military strategy on the conduct of the Vietnam war that was called: