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O'Neill upbeat on economy
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October 26, 2001: 6:24 p.m. ET
Treasury Secretary Paul O'Neill says economy has rebounded from Sept. 11 attacks.
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WASHINGTON (CNN) - Treasury Secretary Paul O'Neill sounded an optimistic note Friday, saying despite some mixed economic data, he believes the U.S. economy has "just about recovered the pace" of economic growth experienced before the Sept. 11 terrorist attacks.
"On balance, we've just about recovered the pace of where we were on September the 10th," O'Neill told reporters following a presidential event at the White House, featuring many of the nation's top CEOs.
"If you look at the market as a forecaster of the future, the markets are now above where they were when we re-opened the markets on September the 17th," O'Neill said.
The Treasury Secretary said the economy is benefiting from the interest rates cuts pushed by Federal Reserve Board Chairman Alan Greenspan and tax rebate checks which were sent out to most Americans over the summer.
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On balance, we've just about recovered the pace of where we were on September the 10th.
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Paul O'Neill
U.S. Treasury Secretary |
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He predicted the additional $60 billion of emergency spending approved by Congress to deal with rebuilding and recovery efforts following the attacks combined with a possible economic stimulus package would give the economy another boost.
"I think ... our economy will rebound into reasonable rates of growth as we move into next year," said O'Neill. "So I am optimistic."
O'Neill said he believed the U.S. economy could experience real productivity growth rates that equal or exceed what the country saw in the 1990s.
"Yes, it's true we are going through dislocations because of a correction related to the boom that ended in the summer of 200, but the foundations of the American economy are very deep and very solid," O'Neill said. "And we are going to be great."
Other Bush administration officials have had less rosy forecasts, predicting negative growth for the third and fourth quarters, with the economy returning to normal growth by next year.
President Bush, for his part, said the terrorist attacks have delivered "shock waves" to the U.S. economy and called on Congress to pass an economic stimulus package, composed primarily of tax cuts.
"We believe that the best way to stimulate and restore confidence to the economy is not through additional spending but through tax relief," Bush told a group of business and agricultural leaders. "If we can get a bill out of both the House and the Senate, it will happen in quick fashion. Unlike spending programs, we won't have to wait for plans to be drafted and contracts to be let."
The House of Representatives passed a $100 billion economic spending plan this week. The president, while supportive of the House action, prefers a measure more in the range of $60 billion-to-$75 billion.
Bush also called on lawmakers to pass an airline security bill and give him the authority to negotiate trade agreements without lawmakers being able to amend them in any way in the future.
Finally, the president urged Congress to pass a comprehensive energy plan, saying it is in the "national interest" to develop more energy supplies at home and not rely on international sources of energy.
Energy Secretary Spencer Abraham said it would be a "mistake" if lawmakers were to recess this year without "finishing work on energy security."
"We do have a lot of energy security issues that go to the critical energy infrastructure and the needs that we have in order to make sure we can take certain kinds of steps that are required now that have to be acted on," Abraham told reporters. "And I would be very disappointed if they couldn't get acted on in the balance of the session so I am hopeful we can find a way." 
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