"The OPEC oil-price hike caused inflation to shoot up in the USA. The stock markets took a real hit, causing considerable nervousness, while there was some serious supply and demand confusion within American industry. However, there was no collapse of the stock markets or the currency or the banking system. Under the chairmanship of Arthur Burns from 1970 to 1978, the Federal Reserve, which followed aggressive deflationary policies, proved robust and, although demand remained lower for a while, manufacturing had improved by mid-1974."