economy
February 18, 2026
Kevin Hassett blasts New York Fed over research that tariffs have hurt US firms
National Economic Council Director Kevin Hassett launched a broadside against the Federal Reserve Bank of New York for publishing research that found the Trump administration’s tariff policies hurt U.S. companies.
TL;DR
- Kevin Hassett, Director of the National Economic Council, criticized a Federal Reserve Bank of New York research paper.
- The paper found that over 90% of tariff costs were passed to U.S. companies and consumers.
- Hassett called the research an "embarrassment" and suggested the authors should be disciplined.
- He argued that lower inflation and higher real wages indicate consumers have benefited from tariffs.
- The incident escalates the Trump administration's conflict with the Federal Reserve system.
- The administration has been pressuring the Fed to lower interest rates.
- Fed Chairman Jerome Powell is under investigation, which he claims is a pretext to pressure him on monetary policy.
- Trump has nominated Kevin Warsh to replace Powell, and Warsh has indicated a desire for "staffing shake-ups" at the Fed.
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