O'Neill would not comment on current the Federal Reserve policy, when asked whether the rapid interest rate cuts last month are an admission that the Fed tightened too much last year.
"For me to give an advice to my old friend in a public setting would not be a really brilliant thing to do," O'Neill said, referring to Fed Chairman Alan Greenspan.
O'Neill added that Greenspan and the Fed have done a "really wonderful job of managing monetary policy over the past ten years." "Far be it from me to second-guess the recent moves that Chairman Greenspan has made ... I have no doubt that he believes he's on the right path to ensure that we do return to hopefully something between 3 and 4 pct real growth rates with no inflation," O'Neill said.
O'Neill was also asked whether he supports the size of President George Bush's 1.6 trln usd ten-year tax cut proposal, after saying in his confirmation hearings that he would like to maintain the "fiscal discipline" established in the previous Clinton Administration. O'Neill said he endorses Bush's program, and will work to get it approved in Congress.