FROM THE OFFICE OF PUBLIC AFFAIRS

Mr. Chairman, Senator Moynihan, Members of the Committee, I am honored to appear before you today as you consider my nomination to be Assistant Secretary of the Treasury for International Affairs. I am pleased to be here with my wife Tracy (a physical therapist) and our daughter Christine (in her third year at Columbia University's College of Physicians and Surgeons); unfortunately our son David (a lawyer in the St. Louis County Prosecutor's office) could not be with us.

I am honored by President Clinton's nomination and by the opportunity to join Secretary Rubin's international team at Treasury. On the occasion of Tim Geithner's swearing in as Assistant Secretary, I was quoted accurately as having said that Secretary Rubin had the best Treasury team that I had worked with in my 26 years in Washington. My hope is that, if confirmed, I will not lower the average.

I am an economist by training, taught five years at Yale University, and spent the past 26 years in the Division of International Finance at the Board of Governors of the Federal Reserve System, the most recent 21 years as its head. During my conversations last summer with Secretary Rubin and Deputy Secretary Summers about the possibility of joining the talented Treasury team in dealing with the difficult challenges of the global economy, I was reluctant and flattered B reluctant to leave the friendly confines of the Federal Reserve and flattered by the thought that I might be able to contribute significantly on a broader scale.

I am confident that we can successfully meet the immediate challenge of restoring stability and growth to the global economy in the wake of the Asian financial crisis and, thereby, benefit the U.S. economy. However, in our focus on these shorter-run issues, we also must not lose sight of the need to make steady and concrete progress in strengthening the functioning of the international financial system in order to help reduce the incidence and severity of future crises.

I embrace the opportunity to work with my many dedicated new colleagues at the U.S. Treasury on these matters. I also look forward to working with this Committee, the Congress, others in the Executive Branch, and representatives of other countries as we together seek effective, pragmatic and cooperative approaches.

Thank you, Mr. Chairman. I am happy to respond to questions.