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Paulson On U.S. Economy: Inflation Is Fed's Concern

CNBC's Maria Bartiromo had an exclusive interview with U.S. Treasury Secretary Henry Paulson this morning. He gave his take on today’s jobs report, the U.S. weak dollar and his upcoming trip to China.

Paulson said the jobs report was “good news.” Even more importantly, though, was the fact that job creation was leading to wage growth. But won’t that lead to inflation? Paulson said inflation was Fed Chief Ben Bernanke’s concern.

As for the weak dollar, Paulson reiterated his idea that a strong greenback was “in our nation’s best interest” and that he feels “very good about the strength of our economy.”

Currency, trade and the capital markets will be on the agenda in China next week. The Treasury secretary said the two countries agree on the strategy for getting China in line with other market-driven economies – but it’s the timing they can’t agree on. Paulson doubts the rest of the world is willing to wait for the Asian giant to catch up.

Paulson understands that there are great expectations for quick changes in China. But he emphasizes that the discussions next week are about the long-term relationship between China and the U.S.

Watch the full interview - parts 1 & 2 - below: