White House Attacks NY Fed Study on Tariff Burden

National Economic Council Director calls Fed research 'an embarrassment' and calls for staff 'discipline'

Published on Feb. 21, 2026

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National Economic Council Director Kevin Hassett strongly criticized a recent study by the Federal Reserve Bank of New York that found U.S. companies bear most of the burden of tariffs, calling the research 'an embarrassment' and saying the people associated with it should be 'disciplined'.

Why it matters

The White House's public rebuke of the New York Fed study highlights the ongoing political tensions around trade policy and the economic impact of tariffs, with the administration pushing back against research that contradicts its stance.

The details

In a CNBC interview, Hassett said the New York Fed study's conclusion 'has created a lot of news that's highly partisan, based on analysis that wouldn't be accepted in a first semester econ class.' He did not provide specifics on what he saw as flaws in the Fed's methodology or findings.

  • The New York Fed study was published on February 18, 2026.

The players

Kevin Hassett

The Director of the National Economic Council, a senior economic advisor to the President.

Federal Reserve Bank of New York

A regional Federal Reserve bank that conducts economic research and analysis.

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What they’re saying

“What they've done is they put out a conclusion which has created a lot of news that's highly partisan, based on analysis that wouldn't be accepted in a first semester econ class.”

— Kevin Hassett, Director, National Economic Council (CNBC)

The takeaway

This exchange highlights the ongoing political tensions around trade policy, with the White House pushing back against economic research that contradicts its stance on the impacts of tariffs.