Fed's Kashkari Criticizes White House Tariff Analysis Rebuke

Minneapolis Fed president says attacks on central bank's independence are 'just another step'

Published on Feb. 24, 2026

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Federal Reserve Bank of Minneapolis President Neel Kashkari criticized recent comments by National Economic Council Director Kevin Hassett that were critical of a New York Fed study on the impact of President Trump's tariff hikes. Kashkari said Hassett's remarks undermine the central bank's independence and are 'just another step to try to compromise the Fed's independence'.

Why it matters

The relationship between the Federal Reserve and the White House has been increasingly strained, with the Trump administration frequently criticizing the Fed's monetary policy decisions. Kashkari's comments suggest these tensions are escalating, raising concerns about the central bank's ability to make decisions free from political interference.

The details

Hassett had called the New York Fed study, which showed that U.S. companies bear most of the burden from the tariff hikes, 'an embarrassment.' Kashkari said these types of attacks on the Fed's analysis are 'really about monetary policy' and are part of a broader effort to undermine the central bank's independence.

  • Kashkari made the comments on Thursday, February 19, 2026, at an event in Fargo, North Dakota.

The players

Neel Kashkari

President of the Federal Reserve Bank of Minneapolis.

Kevin Hassett

Director of the National Economic Council under the Trump administration.

Federal Reserve

The central banking system of the United States.

Donald Trump

The 45th President of the United States who implemented the tariff hikes.

New York Fed

The Federal Reserve Bank of New York, which conducted the study on the impact of the tariff hikes.

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What they’re saying

“This is just another step to try to compromise the Fed's independence. Over the last year we've seen multiple attempts to try to compromise the Fed's independence.”

— Neel Kashkari, President, Federal Reserve Bank of Minneapolis

“It's really about monetary policy.”

— Neel Kashkari, President, Federal Reserve Bank of Minneapolis

What’s next

The ongoing tensions between the White House and the Federal Reserve are likely to continue, with both sides seeking to influence the central bank's decision-making process. Further comments or actions from the administration criticizing the Fed's independence could escalate the conflict.

The takeaway

This incident highlights the delicate balance the Federal Reserve must maintain between making decisions based on its economic analysis and avoiding political interference. The central bank's ability to operate independently is crucial for maintaining public trust and ensuring effective monetary policy.