NYT: A New Page in the Script for Paulson
By STEVEN R. WEISMAN
Published: August 2, 2006
Don Hogan Charles/The New York Times
Henry M. Paulson Jr., the former chairman of Goldman Sachs, gave his first speech on Tuesday since becoming Treasury secretary last month.
Treasury Secretary Henry M. Paulson Jr., delivering his first public remarks since taking office last month, said yesterday that he recognized that the economy was not benefiting all Americans.
“Amid this country’s strong economic expansion, many Americans simply aren’t feeling the benefits,” Mr. Paulson said in a speech at Columbia Business School on the Upper West Side of Manhattan. “Many aren’t seeing significant increases in their take-home pay. Their increases in wages are being eaten up by high energy prices and rising health care costs, among others.”
It was an unusual concession from a high-ranking official in an administration that has spoken only glowingly of recent economic gains and has generally joined with Republicans in Congress by dismissing Democratic concerns about growing economic inequality in the United States as “class warfare.”
On the crucial issue of currency values, however, Mr. Paulson stuck much closer to the traditional script for Treasury secretaries, promising to support a strong dollar. But he offered a hint that he might try to become even more active than his predecessor in dealing with tensions with China over its currency, which many economists say is set artificially low and is aimed at spurring exports to the United States.
Mr. Paulson said that while “a strong dollar is in our nation’s interests,” currency levels “should be determined in open and competitive markets in response to underlying economic fundamentals.’’...
http://www.nytimes.com/2006/08/02/business/02treasury.html