Hassett Calls for Discipline of Fed Researchers Over Tariff Cost Analysis

National Economic Council Director Kevin Hassett has sharply criticized research from the Fresh York Federal Reserve suggesting that American businesses and consumers are bearing the vast majority of the cost of President Donald Trump’s tariffs. Hassett called for the researchers involved to be “disciplined,” igniting a new dispute between the White House and the traditionally independent Federal Reserve.

Criticism of the New York Fed Study

Hassett described the New York Fed’s report as “the worst paper I’ve ever seen in the history of the Federal Reserve system,” in an interview with CNBC on Wednesday, February 18, 2026. He argued that the study’s conclusions, which found that approximately 90% of tariff costs are passed on to Americans, were “highly partisan” and based on flawed analysis .

According to the New York Fed, nearly 90% of the cost of Trump’s tariffs have been borne by American consumers, and businesses.

Hassett’s Core Objection

Hassett’s primary concern centered on the study’s focus on price-related effects, claiming it failed to adequately consider changes in import volume. However, the study authors contend that their assessment of tariff burdens does account for import volume by calculating average duty rates based on the total monthly tariff revenue divided by the total value of imports. They specifically examined how global supply chains shifted in response to the higher tariffs.

Broader Context and Other Analyses

The New York Fed’s findings align with several other studies. Economists at Harvard and the University of Chicago, the Kiel Institut (a German suppose tank), and the nonpartisan Congressional Budget Office (CBO) have all reached similar conclusions regarding the economic impact of Trump’s tariffs. The CBO estimates that 5% of tariff costs are borne by foreign exporters, 30% by U.S. Firms, and 70% by U.S. Families.

White House Sensitivity and Fed Independence

Hassett’s comments underscore the Trump administration’s sensitivity to concerns about rising costs for consumers and businesses. They also represent the latest instance of the White House challenging the independence of the Federal Reserve. The New York Fed and the Fed Board of Governors have declined to comment on Hassett’s criticism.

Hassett spoke to reporters at the White House on February 11, 2026.