The Telegraph
Since 1st March, 1999
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Rail tycoon appointed US treasury secretary

Washington, Dec. 9 (Reuters): US President George W. Bush nominated CSX Corp. chairman John Snow as treasury secretary today and promised aggressive new measures to reinvigorate the economy — and the stock market — before the 2004 re-election campaign.

“John Snow will be a key adviser on the economy and a key advocate of my administration’s agenda for growth, new jobs and wider and more international trade,” Bush said. Three days ago he abruptly dismissed his gaffe-prone treasury secretary, Paul O’Neill, and top economic adviser Lawrence Lindsey in what one Republican insider dubbed “the Friday morning massacre.”

With unemployment at 6 per cent and fears that economic growth could stall, Bush is planning an economic stimulus package that could total as much as $300 billion, including tax cuts for businesses and individuals.

Bush said Snow, head of the biggest rail operator in the eastern United States,“knows firsthand how the economy works” and would play a central role in the effort to “increase the momentum of our economic recovery.” Snow, in turn, promised to “advance a pro-growth, pro-jobs agenda.”

Stephen Friedman, who served as co-chairman of Goldman Sachs with former treasury secretary Robert Rubin, will replace Lindsey as head of the White House National Economic Council, rounding out a team to champion a new round of tax cuts aimed at boosting business investment and increasing job growth.

Friedman’s appointment is not expected until tomorrow at the earliest as the White House scrambled to complete extensive background checks, sources said.

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