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Re: OptionMonster post# 25614

Monday, 06/09/2008 8:55:25 PM

Monday, June 09, 2008 8:55:25 PM

Post# of 72997
U.S. Treasury Secretary Henry Paulson Monday declined to rule out intervening in currency markets to stabilize the dollar, but said strong long-term U.S. economic fundamentals would "shine through" in the dollar's value.

"I would never take intervention off the table or any policy tool off the table." Paulson said in an interview on CNBC. "I just can't speculate about what we will or won't do."

Paulson's comments come ahead of the U.S. Treasury chief's visit to Japan this week to meet with financial chiefs from the Group of Seven nations.

The issue of whether to intervene in currency was not only a topic for Paulson to tackle, but came amid other comments on the subject by two Federal Reserve officials and President George Bush.

Paulson also said record oil prices were "a problem" for the U.S. economy. "There's nothing welcome about it and it's a real headwind," he added.

Paulson said tax rebates of up to $600 per adult and $300 per child would help the U.S. economy, even if a significant portion is spent on purchases of dramatically more expensive gasoline.

http://www.cnbc.com/id/25061619


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