The President Picks Paulson For Treasury Secretary
Tuesday, May 30, 2006SUSIE GHARIB: The CEO of Goldman Sachs has a new job tonight: Treasury secretary of the United States. Henry Paulson was chosen by President Bush today to replace outgoing Treasury Secretary John Snow. Paulson is one of Wall Street`s most powerful players, and, if confirmed by the Senate, could become one of the most influential decision makers in the nation`s capital. Washington bureau chief Darren Gersh reports.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Polls show a large majority of Americans are uneasy about the economy and to reassure them, President Bush turned to Henry Paulson, one of the biggest names on Wall Street.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: He has a lifetime of business experience. He has an intimate knowledge of financial markets and an ability to explain economic issues in clear terms. He`s earned a reputation for candor and integrity.
GERSH: And for bluntness and drive, all wrapped in an unassuming package. The man who took Goldman Sachs public in 1999, and is worth an estimated half a billion dollars, is partial to Timex watches. He is not only a believer in markets. He helped to usher in the era of global finance.
HENRY PAULSON, TREASURY SECRETARY-DESIGNATE: Our economy`s strength is rooted in the entrepreneurial spirit and the competitive zeal of the American people and in our free and open market. It is truly a marvel, but we cannot take it for granted. We must take steps to maintain our competitive edge in the world.
GERSH: But don`t expect Paulson to make U.S. exports more competitive by winking at a falling dollar. Experts say most Treasury secretaries from Wall Street advocate a strong dollar policy which anchors the value of stock and bond markets. At the same time, Paulson may use his clout to quietly pressure China on the value of the yuan.
GARY CLYDE HUFBAUER, SR. FELLOW, INSTITUTE FOR INTERNATIONAL ECONOMICS: He might very well welcome some strength in the Asian currencies and that is how he would probably phrase it.
GERSH: Bringing Paulson on board is clearly a coup for the president. With the administration`s approval ratings at a new low, Washington analysts had come to expect economic policy to drift along until the 2008 election. Paulson might help change that.
KEVIN HASSETT, DIRECTOR OF ECONOMIC POLICY, AMERICAN ENTERPRISE INSTITUTE: Paulson is a real shot in the arm for the Republicans right now. The fact that a person of his stature is willing to join the team when the team is down is the kind of thing that could really change the spirit of Republicans in Washington.
GERSH: Paulson could help fill the stature gap in Washington. Alan Greenspan has retired and Fed Chairman Ben Bernanke is still untested by a major market meltdown. But Henry Paulson knows almost everyone worth knowing in world financial markets. If a global financial crisis breaks out, experts say Paulson has the experience and clout to help calm the waters. Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.
