U.S. Treasury Secretary Janet Yellen: Federal Reserve policies need to be re-evaluated, trade negotiations will prioritize quality over deadlines

U.S. Treasury Secretary Becerra, in his latest speech, called for a comprehensive review of the Federal Reserve system and emphasized that trade negotiations will prioritize quality over deadlines. On Monday, Becerra stated in a media interview that he criticized the Federal Reserve's "panic propaganda" regarding tariffs, pointing out that tariffs have had almost no inflationary effect so far. He declined to comment on reports suggesting that Trump should not fire Federal Reserve Chairman Powell, but emphasized the need to review whether the Federal Reserve has successfully fulfilled its responsibilities. Regarding trade policy, Becerra clearly stated that the Trump administration focuses more on the quality of trade agreements rather than timelines, indicating that they will not rush to reach an agreement before the August 1 deadline, believing that higher tariffs will exert greater pressure on the relevant countries to propose better agreement terms. According to CCTV News, on the 7th, President Trump signed an executive order extending the so-called "reciprocal tariff" deferral period, delaying the implementation date from July 9 to August 1. Federal Reserve Policy Needs Reevaluation Becerra declined to comment on reports suggesting that Trump should not fire Powell, only stating that it would be the president's decision, but he publicly questioned the institutional effectiveness of the Federal Reserve, stating that there is a need to review whether the institution has successfully fulfilled its responsibilities. Becerra stated: The question about the Federal Reserve is whether it has succeeded as an institution. If the Federal Aviation Administration (FAA) made as many mistakes as the Federal Reserve, people would definitely question the reasons. He specifically criticized the Federal Reserve's "panic propaganda" regarding tariffs, pointing out that tariffs have had almost no inflationary effect so far. This statement echoes Trump's ongoing pressure on Powell, as Trump has consistently criticized Powell for not lowering interest rates this year, while traders generally expect that the Federal Reserve will not lower rates at next week's July meeting, but believe that a rate cut in September is more likely. Trade Negotiation Strategy: Quality Over Time Facing the August 1 deadline for the trade agreement, Becerra clearly stated that they will not rush to reach an agreement. In a CNBC interview, he said: We will not rush to make a deal; trade negotiations are "progressing smoothly," but we are pursuing a high-quality agreement. Becerra pointed out: If we ultimately return to the tariff threat on August 1, higher tariff levels will exert greater pressure on the relevant countries to propose better agreement terms. Regarding specific negotiation progress, Becerra revealed that Indonesia will conduct "large-scale procurement," involving agricultural products and Boeing aircraft. From India, a trade agreement with the U.S. is expected to be reached between September and October. For Europe, he stated that "there is no need to fall out with Europe," but pointed out that "Europe acted slowly when trade negotiations were initiated." Regarding Japan, Becerra stated that the government is more focused on securing the best agreement for Americans rather than domestic political considerations in Japan.