Treasury's Paulson Says Fed's Role Must be as a Stabilizer

Speaking to journalists en route to Berlin, Treasury Secretary Henry Paulson said that his speech on July 2 will focus on the Federal Reserve's role as a macro stability regulator.

Paulson said that speech will focus on the Federal Reserve's process for intervening in financial affairs and that any intervention by the Fed must be paired with market discipline.

Paulson added that congress should look at creating financial regulatory changes. He said that he was pleased with the information sharing relationship between the Federal Reserve and the securities exchange commission.

Paulson went on to say that there was not much difference between the U.S., UK and the rest of Europe's approach to the current credit crisis.

Paulson mentioned that he was committed to having Russia join the World Trade Organization and that he agreed with the Russian view that high oil prices were being driven by supply and demand factors.

By Steve Stecyk and edited by Cristina Markham