05/13/99:One On One With Treasury Secretary Robert Rubin
SUSIE GHARIB: With stocks, bonds, and the dollar up today, Treasury Secretary Robert Rubin is going out in a blaze of glory. Just a day after Rubin announced that he'll step down from his cabinet post, he was in New York telling graduates at New York University that decision-making is the key to success in life. I spoke with Rubin a few minutes ago and asked him about his decision to resign.
ROBERT RUBIN, U.S. TREASURY SECRETARY: I feel good about the decision, Susie. I'm clearly going to miss a lot of this. I'm very committed to the administration, the people, the issues and all the rest. On the other hand it's been six and a half years and I feel within myself it's time to go home and go back to New York. So, I feel good about the decision.
GHARIB: Mr. Secretary, you said that you felt comfortable about resigning now because the world is safe. You know, we see a lot of risk areas, in particular Russia, a lot of growing dangers developing there. In your final weeks as Treasury secretary, do you have any specific plans? I mean, what are you going to do?
RUBIN: Yes, that is actually is not what I said. What I said was that, although I know it's been interpreted that way. What I said was that I do think there has been a lot of progress in the last six months in the areas of the financial crisis it affected and I think that there is a greater degree of stability now. But with the United States being the only major part of the world economy that has robust growth, I actually think that there are very serious issues around the world that need to be addressed and I'll continue to address them as long as I'm here. And after I am not here, the rest of the economic team will continue to address them and I don't think they will miss a beat. But there are enormous challenges around the world that need to be addressed.
GHARIB: What about Russia, what can be done in Russia in your final weeks?
RUBIN: Well, I don't think Russia is so much an economic problem. I mean obviously, they have very serious economic issues and I don't, but I think from our point of view, it is much more a national security issue, but that national security issue relates to trying to help Russia have an effective economy. And I think at this moment in time, Susie, I think that the best thing that we can do is see if there is some way to continue to support reform in Russia. And that is I'm sure where our focus will be.
GHARIB: How about China? How risky do you think it is that they may devalue their currency?
RUBIN: Well, when Premier Zhu Rongji was here, he said both publicly and privately that he was very committed to not devaluing the currency and he felt that it was in China's interest not to devalue the currency. I think that really responded to the question.
GHARIB: I want to ask you a little bit about the Fed. Mr. Secretary you have had one of the best working relationships with the Federal Reserve and it's such a delicate balance between the administration and the independent thinking Federal Reserve. What was the secret to success? Was it just that you and Alan Greenspan clicked. Was it those informal breakfasts that you had every week? What was the secret to success.
RUBIN: I would say two things; number one, a deeply felt view on my part but I might add much more importantly on the president's part that respect for the independence of the Fed contributes to the credibility of our markets and was an important part of our overall economic strategy. And number two, Alan Greenspan, Larry Summers and I just all got along and do get along. I was just over there this afternoon with the Larry. We do get along well. We work together well. We think in similar ways even if our views are sometimes different about how to approach issues. So it just worked.
GHARIB: As you pass the baton now to Larry Summers, any special words of advice for him?
RUBIN: Larry and I have worked together. I have known Larry for a long time, much before I came into government. But Larry and I have been partners in this for at least the last two probably more like three years. So, my best advice to Larry would be just to continue doing what you are doing. I think he is terrific and I have no doubt he will be an outstanding secretary.
GHARIB: What do you think should be at the top of his agenda?
RUBIN: I think the issues you raised before. With only one major part of the world economy, only one major part of the world economy enjoying robust domestic demand led growth, the United States, you have what in many ways is an unhealthy situation. And I think he needs to, as he is very much feels he needs to continue working with others around the world to try to promote economic growth in the developing world, in the countries that are affected by the financial crisis and also in the industrial countries.
GHARIB: You have been very sketchy about what your plans are from here on in. You say that you are going to return to New York. But do you see yourself being more in the private sector, in the public sector? Are we going to be calling you Senator Rubin any time soon?
RUBIN: One thing I can say with absolute certainty, Susie and I don't believe in certainty, I believe in probabilities, but even in that context I will say with absolute certainty I have no intention of running for elective office and if I did I think I would be rather poor at it. But I truly do not know what I'm going to do. A lot of things interest me. I think there are a lot of things I would like to be involved with in one way or another and I'm going to have to figure that out. But for now, as long as I am here, I'm going to focus my full energy on my job.
GHARIB: Well, I do hope you will come back and talk to us when you find that new job.
RUBIN: I would be delighted. Thank you very much.
GHARIB: Thank you very much, Mr. Secretary.
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