DJ White House Asked O'Neill, Lindsey To Leave -WH Officials
12/06/2002
Dow Jones News Services
(Copyright © 2002 Dow Jones & Company, Inc.)
WASHINGTON (AP)--President George W. Bush revamped his economic team Friday as Treasury Secretary Paul O'Neill and economic adviser Larry Lindsey resigned at the request of the White House amid growing concern about the ailing economy.
Bush advisers have been increasingly worried that a lagging economy could hamper the president's re-election prospects. The unemployment rate rose to 6% on Friday, the highest in nearly nine years.
Presidential advisers do not blame O'Neill, but they've long recognized that a shakeup of the economic team would help indicate Bush was doing everything he could to improve matters.
The resignations came four weeks after Securities and Exchange Commission Chairman Harvey Pitt resigned under fire.
O'Neill was the first member of Bush's Cabinet to leave. Officials expected him to be replaced quickly; a search already was under way.
Just after the November elections, White House advisers began speculating that Lindsey and O'Neill would be asked to leave. Bush said at the time: "My economic team came in during very difficult times. There was a recession, terrorist attack, corporate scandals. We have done a lot to return confidence and to provide stimulus through tax cuts ... and for that (the team) deserves a lot of credit."
At the White House, press secretary Ari Fleischer said the president credits O'Neill and Lindsey with playing key roles in securing tax cuts and legislation promoting free trade and guaranteeing terrorism insurance to businesses.
"They have both served the president ably and well in leading the nation from a period of recession into a period of growth," Fleischer said.
Still, senior White House officials said the men had been told their departures would be welcome because Bush wanted to shake up his economic team.
"It has been a privilege to serve the nation during these challenging times," O'Neill said in a letter to the president. "I thank you for that opportunity."
During his nearly two years as treasury secretary, O'Neill's blunt-speaking style served as a lightning rod for detractors and sometimes could even make his supporters wince.
(END) DOW JONES NEWS 12-06-02 |
