FROM THE OFFICE OF PUBLIC AFFAIRS

Chairman Roth, Ranking Member Moynihan, members of this Committee, I am grateful for the opportunity to appear before you again, today in connection with my nomination to be Secretary of the Treasury. I am greatly honored by the trust in me that the President has demonstrated by nominating me to follow in the distinguished tradition at Treasury of Lloyd Bentsen and Bob Rubin.

For the past six and a half years, I have served at the Treasury Department. From 1993 until 1995, I served under Secretary Bentsen as Under Secretary for International Affairs, where my focus was on international financial issues. For the past 4 years, I have served as Secretary Rubin's deputy. In that capacity I have participated in the formulation of the Administration's economic and budget strategy and worked on Treasury priorities - ranging from debt management, to protecting the nation's borders - as well as continuing to work actively on international issues.

It has been an immense privilege for me to work with President Clinton and the other members of his economic team, with the Federal Reserve, with this Committee and with others in Congress to put in place a core economic strategy for this country. That strategy has been based on macro-economic stability and achieving fiscal discipline. It has been based on making critical public investments, particularly investments in people, in education especially. It has been based on a recognition of America's interest in open markets and stable growth around the world.

Mr. Chairman, while important challenges remain and we in the United States can never afford to be complacent, the strength of the American economy in recent years stands out. Powered by the initiative and enterprise of the American people and our market system we are enjoying the lowest rates of inflation and unemployment in a generation. We have seen the restoration of American economic leadership around the world. And most important of all, for the past several years we have seen the fastest growth in real earnings of American workers in 25 years.

We can all acknowledge the remarkable contribution that Secretary Rubin has made to our economy over the past six and a half years. At Treasury the right course has been set. Our challenge will be to carry on.

If confirmed as Secretary I will focus on five priority objectives:

• First, maintaining a strong economic strategy, based on continued fiscal discipline and the use of this moment of opportunity to address the long-terms problems facing Social Security and Medicare.
• Second, ensuring that a strong economy translates into growth in the living standards of American workers and their families, and that no part of this country or group of Americans is left behind.
• Third, building the strong, stable and growing global economy on which American prosperity and security ultimately depends, while at the same time working to ensure that global integration benefits American workers, farmers and businesses.
• Fourth, striving to ensure that the American financial system is as safe, competitive and efficient as possible in meeting the needs of American consumers and businesses.
• Fifth, supporting the tradition of excellence and integrity in the career staff of the Treasury Department and its Bureaus that I have come to so much admire during my six and a half years at the Department.

Mr. Chairman, it has been by privilege both as Under Secretary and as Deputy Secretary to work with this committee on many issues. If confirmed I look forward to working even more closely with you in the future and with others in Congress on the full range of challenges that we face.

Thank you once again, Mr. Chairman, for bringing me before this committee. Now I would be pleased to respond to any questions that you or members of the Committee may have.