After Watergate, Gerald Ford assumed the presidency but was unable to curb inflation or the economic difficulties of the time. His pardon of Nixon hurt his popularity and he lost the 1976 election to Jimmy Carter. Carter emphasized human rights but faced challenges like inflation, fuel shortages, and the Iran hostage crisis. This hurt his reelection bid, which was won by Ronald Reagan in 1980. Reagan implemented conservative policies like tax cuts and military spending increases. He faced challenges like budget deficits and scandals but remained popular. The Cold War began to thaw under Gorbachev's reforms in the Soviet Union. George H. W. Bush succeeded Reagan but faced a recession and the Gulf War during his term.