CNBC Press Releases

LIESMAN: THE SAUDI, WE'VE JUST HEARD CALL FOR A SUMMIT OF PRODUCING AND CONSUMING NATIONS. WHAT'S YOUR REACTION TO THAT CALL?

PAULSON: I JUST HEARD ABOUT IT. IT'S GOT TO BE CONSTRUCTIVE, SO I WELCOME IT, BUT AGAIN, I THINK THAT THE SOLUTIONS TO THE BIG PROBLEM, YOU KNOW, ARE LONGER TERM SOLUTIONS IN TERMS OF INVESTING IN SUPPLY AND ALTERNATIVE SOURCES OF ENERGY, BUT AGAIN -- IT ONLY CAN BE GOOD NEWS TO TALK ABOUT THE ISSUE.

LIESMAN: YOU WERE JUST IN THE MIDDLE EAST AND ONE OF THE OBJECTIVES WAS TO OPEN UP THE OIL FIELDS THERE TO U.S. PRODUCERS IN PART BECAUSE OF WHAT YOU HAD SAID WHICH IS THAT THEY'RE NOT INCREASING THE PRODUCTION. DID YOU HAVE ANY SUCCESS IN THE MIDDLE EAST?

PAULSON: AGAIN, MY MESSAGE WASN'T JUST AIMED AT THE MIDDLE EAST. THIS IS JUST GLOBALLY. GLOBALLY, IF YOU LOOK AT MEXICO OR IF YOU LOOK AT VENEZUELA OR RUSSIA, THERE'S -- WE HAVE NOT HAD THE KIND OF INVESTMENT WE NEED IN NEW PRODUCTION CAPACITY OR IN ALTERNATIVE SOURCES OF ENERGY.

LIESMAN: LET'S TURN TO A TOPIC I KNOW YOU TALKED ABOUT AND MARKET PARTICIPANTS FEEL AS IF THE RHETORIC FROM THE UNITED STATES GOVERNMENT ON THE DOLLAR HAS CHANGED. THEY ALSO ARE COMMENTING THAT THERE'S BEEN COORDINATION BETWEEN THE FEDERAL RESERVE AND THE TREASURY ON THE DOLLAR. IS THAT ACCURATE?

LIESMAN: WELL, STEVE, I WORK WITH BEN BERNANKE.WE WORK CLOSELY ON A WIDE VARIETY OF TOPICS THAT HAVE TO WORK WITH THE COMPETITIVENESS OF OUR ECONOMY AND THE CAPITAL MARKETS AND SO WE COMMUNICATE ALL OF THE TIME ON A NUMBER OF TOPICS.

LIESMAN: WHAT IS THE POINT OF TALKING ABOUT THE DOLLAR RELATIVE TO BEING A RESERVE CURRENT CURRENCYIN THE WORLD AND WHAT IS THE SIGNIFICANCE OF NOW THE FED CHAIRMAN TALKING ABOUT IT?DID HE SPEAK OUT OF TURN? IT USED TO BE JUST THE JOB OF THE TREASURY TO TALK ABOUT THE DOLLAR.

PAULSON: LISTEN, THE LOOKING BACK HISTORICALLY, THE FED CHAIRMAN SPEAKS ABOUT A LOT OF THINGS INCLUDING CURRENCY, BUT IN TERMS OF THE TREASURY, I'VE BEEN MAKE THE POINT ALL OF THE WAY ALONG THAT OUR ECONOMY MAY HAVE ITS UPS AND DOWNS, BUT THAT LOOKED AT OVER ANY REASONABLE PERIOD OF TIME THAT OUR LONG-TERM FUNDAMENTALS COMPARE QUITE FAVORABLY WITH OTHER MAJOR INDUSTRIAL NATIONS AROUND THE WORLD AND THAT'S GOING TO BE REFLECTED IN THE PRICE OF OUR --THE VALUE OF OUR CURRENCY.

LIESMAN: SHORTLY AFTER YOU MADE COMMENTS AND THE FED CHAIRMAN MADE COMMENTS ON THE DOLLAR IT STRENGTHENS AND IT WAS THEN UNDERCUT LATER IN THE WEEK WHEN THE EUROPEAN CENTRAL BANK PRESIDENT JEAN CLAUDE TRICHET MADE COMMENTS THEY WERE GOING TO HIKE INTEREST RATES THERE. DO YOU FEEL THAT THE EUROPEAN BANK PRESIDENT UNDERCUT WHAT YOU HAD ACHIEVED WITH THE FED CHAIRMAN?

PAULSON: I OBVIOUSLY NOTICED HIS COMMENTS.I CAN'T COMMENT ON WHAT CENTRAL BANK OFFICIALS MIGHT DO AROUND THE WORLD.AGAIN, I JUST BRING YOU BACK TO -- AT THE END OF DAY, I THINK, FUNDAMENTALISTS ARE GOINGTO BE WHAT ARE GOING SHINE THROUGH IN AND THE LONG-TERM FUNDAMENTALS WILL SHINE THROUGH.

LIESMAN: JUST FROM THE STANDPOINT OF UNDERSTANDING YOUR PHILOSOPHY, THE BUSH ADMINISTRATION, WILL, IF IT CONTINUES ON THE CURRENT COURSE LEAVE OFFICE AND IT WILL BE ONE OF THE FIRST ADMINISTRATIONS TO NOT INTERVENE IN THE DOLLAR MARKET, DO YOU FEEL FROM A PHILOSOPHICAL POINT OF VIEW THAT INTERVENTION IS A POLICY TOOL THAT IS ON THE TABLEOR OFF THE TABLE?

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