WASHINGTON (AFX) - The biggest threat to the U.S. economy is people talking it down, Treasury Secretary Paul O'Neill said in an interview on CNBC television.
Reiterating that he is in favour of a strong dollar, O'Neill said he is in favour of "complete" free trade, with a zero-for-zero trade policy.
Asked what he sees at the biggest risk to the U.S. economy, O'Neill said: "People talking themselves down".
He said Argentina and Brazil cannot be regarded separately, as any economic problems in one will create a problem in the other. What caused the current problems in Argentina was a 50 pct devaluation in Brazil, he said.
However, O'Neill said he is "encouraged" by the appointment of Domingo Cavallo as Argentina's Economy Minister.
He said he hopes that Argentina can solve its problems and that "Brazil will come along".