Summers Is Given Oath as 71st Treasury Secretary

Lawrence Summers was sworn in Friday as the 71st Treasury secretary, a day after the Senate overwhelmingly voted to put the 44-year-old former Harvard professor in charge of the nation’s economic policy.

Vice President Al Gore, in his function as president of the U.S. Senate, administered the oath of office during a private ceremony at the White House, clearing the way for Summers’ predecessor, Robert E. Rubin, to return to private life after more than four years in the hot seat at Treasury. President Clinton also attended the ceremony.

Summers has pledged to carry on the economic course set by Rubin, marked by a firm belief in a strong U.S. dollar, free markets, sound government budgets and open borders.

Summers is taking over the reins at Treasury as the U.S. economy enjoys its ninth straight year of unbroken growth, fueled by strong consumer spending and a fiery stock market.

But with many overseas economies still struggling to overcome the effects of two years of a fierce global financial crisis, he clearly has his work cut out for him.

At home, Summers faces wrangling over Clinton’s tax and trade policies, as well as questions over his role in International Monetary Fund-organized bailouts for several Asian nations, Brazil and Russia.

Although his confirmation process was not without bumps, opposition to the sometimes prickly former academic quickly melted away for fear that delaying his confirmation would upset fragile world markets.

Many senators said they are heartened by Summers’ appointment. They say he deserves credit as Clinton’s point man on international economic policy, helping stabilize global markets after Asia’s “tiger” economies crumbled in 1997.

Rubin and Summers, who until now served as deputy Treasury secretary, have always been a highly effective team, even though their personalities were in many ways opposite.

Where Rubin’s lean appearance was matched by a suave demeanor, the intellectually brilliant Summers often came across as brash and self-centered, his strong ego combined with a heavy-set appearance.

But those contrasts slowly faded into the background as it became increasingly clear that Summers was Rubin’s designated successor. Although his substance has remained the same, Summers’ style underwent a visible and carefully managed change.

The new Larry Summers has been all smiles and handshakes as he strives to come across as an affable but cautious and diplomatic statesman, eager to spread the gospel of free markets and sound economic basics around the world.

Summers is likely to face the first test of his diplomatic skills July 13, when he is expected to attend a meeting of finance ministers from the Group of 7, the top industrial nations, in Brussels to discuss a reconstruction plan for the Balkans.