Remarks Announcing the Nomination of Alan Greenspan To Be Chairman of the Board of Governors of the Federal Reserve System

The President. I have a statement for you: Paul Volcker has advised me of his decision not to accept a third term as a member and Chairman of the Federal Reserve Board. I accepted Mr. Volcker's decision with great reluctance and regret. He has served with distinction on the Board of Governors and has been an historic Chairman during this time of economic recovery and expansion.

Therefore, it's my intention to nominate Dr. Alan Greenspan to a 4-year term as Chairman of the Federal Reserve. Mr. Volcker has indicated his strong support for Dr. Greenspan. And let me add, my dedication to our fight to hold down the forces of inflation remains as strong as ever. And I know that Dr. Greenspan shares that same commitment.

Now, let me explain that because of my schedule and an appointment waiting for me, I am going to leave you and these three gentlemen here—Chairman Volcker and Secretary Baker and Dr. Greenspan all will have statements for you and take your questions.

Q. Mr. President, did you get an agreement that Dr. Greenspan won't raise interest rates during the '88 campaign?

The President. I told you, I'm not taking any questions.