Senior Republicans sounded out Mr Alan Greenspan, chairman of the Federal Reserve, about taking over from Mr John Snow as US Treasury Secretary, it has emerged. The informal approach, which would have put the most respected economic leader in the US in charge of President Bush's ambitious second-term domestic agenda, was declined.
The approach to Mr Greenspan, made at arm's length from the White House, reflected concern that Mr Snow was not the most effective champion of Mr Bush's agenda.
Mr Bush last week confirmed that Mr Snow would remain as Treasury Secretary, ending days of reports that the administration had been trying to line up a big-name replacement.
Meanwhile, the US current account deficit widened to a fresh record of $164.71 billion in the third quarter as import growth continued to exceed exports.
The current account is the broadest measure of the US balance sheet with the rest of the world. It has not been in surplus since the early 1990s.
The Commerce Department said the goods shortfall rose to a record $166.73 billion (€126 billion) from $163.58 billion. Including the services surplus, the combined deficit grew by $4.26 billion to $155.34 billion.
"While the positive contribution is less than was the case in the late 1990s during the tech boom, it lessens what would be even worse deficits," said Mr Mike Englund, chief economist at Action Economics.
