Treasury Secretary Says He’ll Sell Alcoa Stock
Treasury Secretary Paul H. O’Neill said Sunday he would sell his almost $100 million worth of Alcoa Inc. holdings to avoid any potential conflicts when making decisions on the U.S. economy or tax policy.
The holdings were a target of government watchdog groups and critics of the Bush administration, and O’Neill said he did not want to have to withhold advice to President Bush.
“I’m just going to take this issue off the table,” O’Neill said on ABC television’s “This Week” program.
On the program, O’Neil also said the U.S. economy is “still in positive territory,” citing automobile sales above last year’s levels and a strong housing market.
“There’s no doubt we’re going through a correction, but we’re going to be OK,” he said.
After meeting with presidents of the 12 Federal Reserve banks, O’Neill said his assessment of the economy is that it is growing from 0.25% to as much as 0.75%.
O’Neill’s comments were more positive than economic forecasts from other members of the Bush administration recently, including warnings from the president that a recession may be looming. Asked about a statement by White House Chief of Staff Andrew H. Card Jr. over the weekend that there is a “very dark cloud hanging over this economy,” O’Neill said, “I have my own view.”
A Treasury department statement issued Sunday said O’Neill decided to sell the Alcoa stock because “there is essentially no limit to the range of policy issues that impact the U.S. economy, and therefore come before him for review.”
“I never want to be in a position where I can’t advise the president,” the statement quoted O’Neill, 65, as saying.
O’Neill already has started divesting his holdings, a Treasury Department spokesman said. O’Neill said he would put the proceeds into mutual funds.
He also is leading the push for Bush’s $1.6-trillion tax cut proposal, the centerpiece of his economic agenda. The Bush tax plan focuses on tax breaks for individuals. However one part of the package would extend the research-and-experimentation tax credit, which stands to benefit Alcoa and other U.S. corporations.
