Fed President Calls White House Criticism of Fed Research an Attempt to Influence Interest Rates

Neel Kashkari says the White House's attack on a New York Fed paper is really about controlling monetary policy.

Published on Feb. 26, 2026

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Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said Thursday that calls from the White House to discipline Federal Reserve economists over a tariff study are an attempt to influence monetary policy. The White House, through National Economic Council Director Kevin Hassett, has criticized a New York Fed paper that concluded U.S. businesses and consumers have borne most tariff costs.

Why it matters

The White House's criticism of the Fed's research raises concerns about political interference in the central bank's independence. The Fed's ability to make decisions based on objective economic analysis is crucial for maintaining trust in monetary policy and avoiding the perception that it is being influenced by political considerations.

The details

Hassett, the White House's top economic adviser, has accused the New York Fed of producing research that is "really not up to the standards" of the central bank. He argued the study, which found that tariffs imposed by the Trump administration have cost U.S. firms and consumers $3 billion per month, was flawed and biased.

  • The New York Fed paper was published in 2019.
  • Hassett criticized the paper in February 2026.

The players

Neel Kashkari

President of the Federal Reserve Bank of Minneapolis.

Kevin Hassett

Director of the National Economic Council and top economic adviser to the White House.

Federal Reserve

The central banking system of the United States.

New York Fed

The Federal Reserve Bank of New York, one of the 12 regional Reserve Banks that, together with the Board of Governors, make up the Federal Reserve System.

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What they’re saying

“Calls from the White House to discipline Federal Reserve economists over a tariff study are an attempt to influence monetary policy.”

— Neel Kashkari, President of the Federal Reserve Bank of Minneapolis

“The study, which found that tariffs imposed by the Trump administration have cost U.S. firms and consumers $3 billion per month, was flawed and biased.”

— Kevin Hassett, Director of the National Economic Council

What’s next

The White House's criticism of the Fed's research is likely to continue, as the administration seeks to maintain influence over monetary policy decisions that could impact the economy and the president's reelection prospects.

The takeaway

The White House's attack on the Fed's independence through its criticism of the central bank's research highlights the ongoing tensions between political interests and the need for the Fed to make decisions based on objective economic analysis. This episode underscores the importance of preserving the Fed's credibility and its ability to conduct monetary policy free from undue political influence.