Search for Treasury Secretary narrows to three names

Members of President-elect Bush's economic team today said the choice for Treasury secretary is down to three names: William McDonough, current head of the New York Federal Reserve; John Hennessy, head of Credit Suisse First Boston's equity division; and Walter Shipley, retired Chase Manhattan chairman. "If they need a Democrat, its McDonough," said a Bush adviser. The Bush team highly values McDonough's experience during the Asian financial crisis and for his close ties to Federal Reserve Chairman Greenspan--an invaluable connection if the economy faces stormy weather, particularly given the frosty relations between Greenspan and Bush's father's administration. Shipley, once the leading Treasury candidate, may pull himself out of contention for health reasons. There is a boomlet of interest within the Bush camp in naming retiring House Ways and Means Chairman Archer to be the U.S. trade representative. Meanwhile, two governors have taken their names out of contention. GOP Gov. John Rowland of Connecticut and Democratic Gov. James Hunt of North Carolina Wednesday said separately they are not interested in serving, the Associated Press reported. Rowland has been mentioned in connection with jobs at the Labor, Commerce and Education departments, but said, "What I'd like to do is play a role with the president, kind of behind the scenes." Hunt has been mentioned as a possible candidate for Education secretary, but said he would prefer to stay in North Carolina. And H. Brent Coles, the Republican mayor of Boise, Idaho, and president of the U.S. Conference of Mayors, called on Bush today to appoint a mayor either as HUD secretary or in another Cabinet post so there will be "a voice" at the highest levels of government to understand the problems of cities. Coles also said that mayors are hoping Bush's background as a governor will make him sensitive to local problems.