INFLATION STILL A CONCERN, VOLCKER SAYS Federal Reserve Board Chairman Paul Volcker said both the Fed and the financial markets remain concerned about the possibility of renewed inflation. "A possibility of renewed inflation remains of concern, both in the markets and within the Federal Reserve," he said in remarks prepared for delivery to a group of business leaders here. He said one potential channel for renewed inflationary pressures would be an excessive fall of the dollar in the exchange markets, which would push import prices up sharply. He said participants in financial markets and business remain skeptical of prospects for lasting price stability. "Should the skepticism about our ability to resist inflation be reinforced by bad policy, the consequences for interest rates, for exchange rates, and for the economy generally would clearly be undesirable...recognition of that danger neccesarily must weigh heavily in the formation of monetary policy," the Fed chairman said. Volcker said attempts to drive the dollar much lower would undermine the hard won gains against inflation and would risk dissipating the flow of foreign capital.