Bush Asks Brady to Remain at Treasury, Indicates Major Role for Him on Budget
WASHINGTON -- President-elect George Bush asked Nicholas Brady to remain as Treasury secretary, and he indicated the former investment banker and U.S. senator will play a prominent role in budget negotiations with Congress.</br></br>"His experience in the Senate brings him the valuable ability to work effectively with the Congress as we develop a budget deficit reduction plan," said Mr. Bush. "He knows that we have got to sit down with Congress and hammer out a budget deficit agreement, and we have to do it soon."</br></br>Budget policy is traditionally handled by the White House budget office. But Mr. Brady has shown an unusual interest in budget issues since taking office two months ago. He has had his staff brief him on the budget and budget process. And yesterday, he even attended a review of health-budget issues held by Joseph Wright, the current budget director.</br></br>Mr. Brady, who will be the new administration's chief economic official, is a close friend of President-elect Bush. He is known as a pragmatist, without strong ideological leanings. Besides working on budget issues, he is looking for innovative approaches to nagging economic problems, such as the savings-and-loan crisis, Third World debt and the federal budget deficit.</br></br>Aides say Mr. Brady also has shown an interest in government measures that would make corporate managers focus less on short-term profits and more on the longterm health of their companies. One idea being discussed at the Treasury is a "sliding-scale" capital-gains tax break that would provide larger benefits to people who hold stocks for a long time.