At an April 8 luncheon at the Economic Club of New York, Volcker commented on the state of the economy. The Wall Street Journal's website offered readers a link to his speech.

In his address, Volcker, who led the Fed from 1979 to 1987, said that fear and enthusiasm can amplify financial crises. "It is the basic responsibility of a central bank — most decidedly of the Federal Reserve, the influence of which spreads worldwide — to balance and moderate those forces.

"That is a tough job, especially when the markets are in turmoil and concerns about recession are rife," he added.