VOLCKER IN LETTER DECLINES NEW FED TERM
Following is the full text of Federal
Reserve Board Chairman Paul Volcker's letter to President
Reagan declining reappointment to the Fed:
    Dear Mr. President,
    As the end of my term as chairman of the Federal Reserve
Board approaches, you naturally have to consider an appropriate
new appointment.
   
    In that connection, you will recall that, upon my
reappointment as chairman in 1983, I felt unable to make a firm
commitment to you or to the Congress to remain in office for a
second full four-year term. Despite my reservations at the
time, that term is in fact now almost finished. However, I do
think, after eight years as chairman, a natural time has now
come for me to return to private life as soon as reasonably
convenient and consistent with an orderly transition.
Consequently, I do not desire reappointment as chairman and I
plan to resign as governor when a new chairman is prepared to
assume office.
   
    I will be leaving with a sense of great appreciation for
your unfailing courtesy to me personally. More broadly, your
consistent support of the work of the Federal Reserve during a
particularly challenging period for it, for the financial
system, and for the economy has been critical to whatever
success we have had.
   
    Without doubt, strong challenges remain for all of those
involved in economic policy. In that effort, I believe the
nation will continue to be well served by a strong Federal
Reserve System -- a system firmly dedicated to fostering
economic and financial strength and stability and able to bring
to that effort a combination of sound and independent
professional judgement and continuity beyond any partisan
considerations.
   
    May I add, too, my personal best wishes for the remainder
of your own term in office during which you have done so much
to restore a sense of confidence and self-reliance among the
American people.
    Faithfully yours,
    Paul A Volcker
 Reuter
