Bessent: "More Focused on Quality Than Timing for Trade Agreement"

"Deadline Extension Depends on Trump"

"It's Time to Discuss Major Economic Restructuring With China"

"Need to Review Fed Functions"

Scott Bessent, U.S. Secretary of the Treasury, stated that ahead of the August 1 tariff negotiation deadline, the Trump administration is more concerned with the quality of the trade agreement than its timing.

In an interview with CNBC on the 21st (local time), Bessent said, "The United States will not rush to close a deal." He also responded that Trump would decide on any extension of the deadline for countries engaged in productive negotiations.

Bessent further noted, "There will be talks with China in the near future," mentioning the issue of China making large-scale purchases of Iranian and Russian oil despite being subject to sanctions. He added, "Now we may discuss key issues such as fundamental economic restructuring in China, which have not been officially addressed before."

He stated that if a second round of tariffs is imposed on Russia, the US would urge Europe to take similar measures.

Bessent also proposed a comprehensive review of the Federal Reserve System's functions. Raising questions about whether the Fed has performed its mandate successfully, he remarked, "We need to inspect the overall operation of the Fed and verify its success."

These remarks come amid escalating tensions between the White House and the central bank. Last week, a White House official was quoted suggesting President Donald Trump was preparing to fire Fed Chair Jerome Powell, but Trump denied making preparations for a dismissal, which could present legal issues.

Bessent himself is at the center of controversy as a possible successor to Powell as Fed Chair. Over the weekend, The Wall Street Journal (WSJ) reported that Trump enlisted Bessent as a mediator to prevent Powell's dismissal, but Trump denied this. When questioned about it, Bessent responded, "President Trump makes decisions after gathering a variety of opinions, and the decision is his to make."

The Trump administration recently criticized the Fed for the $2.5 billion (₩3,460,000,000,000) renovation costs for two longstanding buildings in Washington, D.C.

On interest rates, Bessent said he would support a rate cut if inflation has so far been nearly nonexistent. He stated, "There has been fear-mongering over tariffs, but so far, inflation has been minimal or entirely absent." He criticized, "Because the U.S. once experienced massive inflation, PhDs at the Fed seem trapped in a particular mindset."

Jung-A Kim, contributing reporter kja@hankyung.com