Tsy's Rubin Discusses Highlights of His Tenure
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By Adrian Zawada
FWN Staff Writer
Washington-March 19-FWN--Treasury Secretary Robert
Rubin discussed the highlights of his tenure at a
conference this afternoon, first citing the importance
of his economic team in determining the federal
government's policy.
Following his speech on financial modernization at
the Shorenstein Center of Harvard University, a reporter
asked Rubin to remark on his achievements as Treasury
secretary.
"What we have done...was to create a real economic
team and function as a team," Rubin said.
When asked whether he had any plans to resign,
Rubin repeated, for the second time, his statement, "My
mind is on the issues in front of me."
Rumors Rubin would soon leave his post have
circulated for months. Speculation heightened, however,
after it was recently learned he won't be attending a
meeting of Pacific Rim economic officials in May. A
Treasury spokesman earlier this week rejected
suggestions that Rubin's failure to attend the Asia-
Pacific Economic Cooperation forum in Malaysia indicated
resignation is imminent.
Observers have noted, however, that this will be
the first time Rubin has not attended the annual
gathering. Deputy Treasury Secretary Lawrence Summers
will attend in Rubin's place.
Rubin cited the debt reduction program of 1993, the
Mexican peso intervention in 1996 and his strong dollar
policy. He said he consistently stood for opening
markets abroad, and opening markets domestically.
President Clinton's commitment to respecting the
independence of the Federal Reserve was important in
contributing confidence to the position, he said.
The Fed and the Treasury have worked together in
"indispensable ways" in dealing with the world's
financial crises, Rubin said
Regarding the Dow Jones hitting the 10,000 mark,
Rubin said the event has the potential of creating vigor
in the stock market, and the market often tends to lose
such vigor.
Rubin stressed market participants need to
consider the current valuation of stocks, which he said
is often overlooked, and their aversity to risk.
Meanwhile, Russia's debt problems with the
International Monetary Fund (IMF) need to be resolved
without U.S. interference, Rubin said.
"That negotiation is not with the U.S.," Rubin
said. "That negotiation is with the IMF."
Rubin noted that the IMF reforms to assist Russia's
progress were not acted upon by the Duma, Russia's
congress.
"The Duma had to proceed with reforms, and it did
not," Rubin said.
In his speech to the conference, Rubin said during
his tenure the world was twice on the verge of severe
crisis--in December 1997 when Korea was on the precipice
of financial collapse and in August 1998 when the
Russian government devalued the ruble and imposed a
partial debt moratorium.
End
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