13 September 2001

O'Neill Statement on Confidence in U.S. Economy

Secretary of the Treasury Paul O'Neill says that while the terrorist attacks will cause some short-term disruptions, Americans have every reason to be confident in their economy.

"Supply disruptions are real, as some transportation stopped or slowed for several days this weeks," O'Neill said in a September 13 statement. "These effects will be transitory, as transportation flows return to normal," he said.

"We have every reason to maintain our confidence in the U.S. economy," O'Neill said, adding that the prospects for an economic rebound "remain unchanged."

"No evil, no matter how unspeakable, can destroy America's productive spirit."

The Treasury Department is working to minimize disruptions to the U.S. financial system, O'Neill added. Banks are open and doing business and the U.S. Treasury bond market successfully traded on September 13, he said. The U.S. equity markets, including the New York Stock Exchange, will resume normal activity on Monday, he said.

Following is the text of O'Neill's statement:

Statement Of Treasury Secretary Paul O'Neill
September 13, 2001

Good afternoon. As you know, I was overseas when terrorists attacked the United States. I kept in contact with Treasury, with the Administration, with the Federal Reserve and with the financial markets, and returned to Washington as soon as possible to deal with the aftermath of this assault on America.

My deepest sympathies go out to the families of the victims of this tragedy. I am especially proud of the men and women of Treasury's enforcement bureaus, who jumped into action immediately to assist with rescue efforts and protect our people.

The destruction in New York City is horrible and detestable.

At the same time, America's dynamic economy is not located in any one place. Innovation and productivity are found in every factory and farm, every laboratory, every financial institution, every small business and every home office across America. That spirit cannot be destroyed.

We have every reason to maintain our confidence in the U.S. economy. No evil, no matter how unspeakable, can destroy America's productive spirit. If anything, this evil act strengthens our resolve to be the most free, most vibrant economy in the world.

This tragedy will cause some short-term dislocations. Supply disruptions are real, as some transportation stopped or slowed for several days this week. These effects will be transitory, as transportation flows return to normal.

Treasury is working to minimize the disruptions to our financial system. Banks have been open and doing regular business all week. The Treasury bond markets traded successfully today. This is an important step on the way back to full market operation. Our equity markets will resume normal activity on Monday.

The prospects for a rebound in the U.S. economy remain unchanged.

Treasury and the IRS [Internal Revenue Service] are taking steps to minimize the distraction of tax issues raised by this disaster. Today we are announcing initial administrative tax relief for the victims of the attacks in New York and at the Pentagon.

Thank you.