The rumor that Mr. Yuri Andropov is already dead gained credibility during his recent appearances.
The reappointment of Paul Volcker as Federal Reserve chairman did not come as a particular surprise. Volcker’s stock has been rising for the past six months, a fact that has a great deal to do with mounting concern over possible economic debacles in the Third World. A major threat to U.S. economic recovery could occur if defaults in countries such as Mexico, Brazil, or Nigeria caused severe damage to our exports. Mr. Volcker was thought to possess the expertise and to have the central banking contacts that would enable him to deal with these potential crises. Mr. Reagan, with domestic recovery now well under way, also probably opted for caution and continuity; and an educated guess would be that Mr. Volcker agreed to be cooperative in political terms as the 1984 election approaches.
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