White House Adviser Criticizes NY Fed Tariff Study

Hassett says researchers should "be disciplined" over findings on tariff impacts

Published on Feb. 21, 2026

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National Economic Council Director Kevin Hassett has criticized recent research from the Federal Reserve Bank of New York that suggested more than 90% of tariffs are being shouldered by U.S. importers and consumers. Hassett argued the paper is an "embarrassment" and that the researchers should "be disciplined" over the findings, which contradict the White House's stance that tariffs boost wages and lower inflation.

Why it matters

This dispute highlights the ongoing debate over the economic impacts of the Trump administration's trade policies, with the White House pushing back against research that challenges its narrative around the benefits of tariffs.

The details

Hassett, a top economic adviser to President Trump, argued that the New York Fed study was flawed and did not properly account for the broader economic effects of tariffs. He claimed the research failed to show how tariffs have boosted wages and lowered inflation, which the White House has touted as key benefits of the administration's trade policies.

  • The New York Fed study was recently published.

The players

Kevin Hassett

The Director of the National Economic Council and a top economic adviser to President Trump.

Federal Reserve Bank of New York

The regional Federal Reserve bank that published research on the impacts of tariffs, which Hassett has criticized.

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What they’re saying

“The paper is an embarrassment. It's, I think, the worst”

— Kevin Hassett, Director, National Economic Council (seekingalpha.com)

The takeaway

This dispute highlights the ongoing tensions between the White House and economic researchers over the impacts of the administration's trade policies, with the White House pushing back against findings that challenge its narrative around the benefits of tariffs.