Paulson to replace Snow

President George W.Bush announced on Tuesday that Treasury Secretary John Snow was resigning and that he has nominated Goldman Sachs chairman Henry Paulson to replace him. The president said that Paulson would be pursuing long-standing White House economic policies. Naming Paulson gives Bush a Wall Street heavy hitter to use as an advocate for his tax-cut policies, which he calls an important factor in the growing economy but which his opponents say has contributed to long-term budget deficits.

‘‘He will work closely with the Congress to restrain the spending appetite of the federal government and keep us on track to meet our goal of cutting the deficit in half by 2009,’’ Bush said. He said Paulson will be an important representative of the US in trying to open markets for US goods. ‘‘He will insist on fair treatment for American businesses, workers and farmers. He will help ensure that our trading partners play by the rules, respect international property rights and maintain flexible market based exchange rates for their currencies,’’ Bush said.

Another item on Paulson’s agenda will be to expand trade and persuade China to move quickly to a market-based exchange rate as a way to help US manufacturers’ goods be more competitive in China.