Wed, 18 Feb 2026

Wed, 18 Feb 2026 Trump adviser calls for Fed economists to be 'disciplined'

Kevin Hassett criticised a New York Fed study into tariffs and the impact on US firms and consumers.
A senior economic adviser to Donald Trump has criticized a study by the New York Federal Reserve, claiming it was an "embarrassment" and that its authors should be "disciplined". The report found that 90% of the cost of US tariffs is borne by American companies and consumers. However, National Economic Council director Kevin Hassett disagreed with these findings, stating that prices have fallen, inflation is lower, and real wages are up $1,400 on average last year. He claimed that the study's conclusion was "highly partisan" and wouldn't be accepted in a first-semester economics class. This is not the first time Trump has clashed with the Federal Reserve over interest rates and tariffs. The Supreme Court is currently weighing a legal challenge to Trump's global tariffs, which have been imposed since 2025. Other studies, including one by the Kiel Institute for the World Economy and the National Bureau of Economic Research, have found that US companies are largely passing on the costs of tariffs to consumers. The Federal Reserve has been under pressure from Trump to lower interest rates more aggressively. The central bank's chair, Jerome Powell, is also facing a criminal investigation over his testimony to the Senate about Fed building renovations.
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