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9h ago

Hassett Calls for Discipline of New York Fed Researchers Over Tariff Study

The remarks escalate pressure on Fed research independence, contradicting findings from the New York Fed, the CBO and academic studies that most 2025 tariff costs were borne in the U.S.

Kevin Hassett, director of the National Economic Council, outside the White House in Washington, DC, US, on Wednesday, Dec. 10, 2025.

Overview

  • On CNBC, National Economic Council Director Kevin Hassett labeled the New York Fed paper an embarrassment and said its authors should be disciplined.
  • The Feb. 12 analysis by New York Fed researchers reported that roughly 90% of the 2025 tariff burden fell on U.S. firms and consumers as average tariffs rose from about 2.6% to 13%.
  • The study found import prices for tariffed goods rose substantially relative to untariffed goods, estimating an increase of about 11% for the affected categories.
  • Hassett argued the research focused on price pass-through and ignored shifts in import quantities, sourcing, onshoring and wage effects, citing lower inflation readings and a reported $1,400 gain in real wages.
  • Nonpartisan and academic analyses, including the CBO, similarly conclude most tariff costs are domestic, and economists and editorial voices criticized Hassett’s call as a threat to Fed research independence, while the New York Fed declined comment.