New US treasury secretary

President George W. Bush announced yesterday that Treasury Secretary John Snow was resigning and that he has nominated Goldman Sachs chairman Henry Paulson to replace him.

In a White House Rose Garden announcement, Mr Bush praised Mr Paulson's lifetime of business experience and said he had the ability to explain complicated economic concepts in clear language. The president made clear that Mr Paulson would be pursuing long-standing White House economic policies.

Naming Mr Paulson gives Mr Bush a Wall Street heavy hitter to use as an advocate for his tax-cut policies, which he calls an important factor in the growing economy but which his opponents say has contributed to long-term budget deficits.

"He will work closely with the Congress to restrain the spending appetite of the federal government and keep us on track to meet our goal of cutting the deficit in half by 2009," Mr Bush said.

In addition, he said Mr Paulson will be an important representative of the United States in trying to open markets for US goods.

"He will insist on fair treatment for American businesses, workers and farmers. He will help ensure that our trading partners play by the rules, respect international property rights and maintain flexible market based exchange rates for their currencies," Mr Bush said. Another item on Mr Paulson's agenda will be attempting to expand trade and persuade China to move more quickly to a market-based exchange rate as a way to help US manufacturers' goods be more competitive in China.

Mr Snow's resignation had long been rumoured and comes at a time when the US economy is moving along briskly, although with worrisome hints of inflation on the horizon.