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Trump Advisor Calls for Punishment of Fed Researchers Over Tariff Views
Kevin Hassett criticizes Fed report finding tariffs hurt US consumers and firms, sparking concerns over Fed independence.
Feb. 22, 2026 at 11:07am
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Kevin Hassett, a top economic advisor to President Donald Trump, has called for the Federal Reserve researchers behind a report critical of the administration's tariff policies to be "disciplined." The report found that 90% of the economic burden of higher tariffs fell on US firms and consumers. Hassett defended the tariffs, but his comments have sparked fresh concerns about threats to the Fed's independence.
Why it matters
Hassett's remarks come at a time when the Trump administration is already under scrutiny for investigations into Fed Chair Jerome Powell and Fed governor Lisa Cook. This latest incident raises questions about the White House's willingness to interfere with the Fed's ability to conduct independent economic analysis, which is seen as crucial for maintaining trust in US monetary policy.
The details
The report in question was published last week by the Federal Reserve Bank of New York. It found that 90% of the economic burden of higher tariffs implemented by the Trump administration fell on US firms and consumers. Hassett criticized the report, calling it an "embarrassment" and saying the authors "should presumably be disciplined" for their findings.
- The Fed report was published last week.
- Hassett made his comments criticizing the report on CNBC on February 18, 2026.
The players
Kevin Hassett
The director of the National Economic Council and a top economic advisor to President Donald Trump.
Jerome Powell
The current Chair of the Federal Reserve.
Lisa Cook
A member of the Federal Reserve's Board of Governors.
Claudia Sahm
A former economist at the Federal Reserve who created the Sahm rule, a popular recession indicator.
Steve Sosnick
The chief strategist at Interactive Brokers.
What they’re saying
“The paper is an embarrassment. It's, I think, the worst paper I've ever seen in the history of the Federal Reserve system. The people associated with this paper should presumably be disciplined because what they've done is 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 of the National Economic Council
“The Fed Chair has the ability to suppress research from the Fed. Will he if it disagrees with White House?”
— Claudia Sahm, Former Fed Economist
“At best it's an angry outburst instead of a reasoned response, and at worst it is meant to chill speech and curb central bank independence.”
— Steve Sosnick, Chief Strategist, Interactive Brokers
What’s next
Kevin Warsh, Trump's nominee to replace Jerome Powell as Fed chair, is expected to be questioned about Hassett's comments during his upcoming confirmation hearing.
The takeaway
Hassett's calls for punishing Fed researchers over their analysis of tariff impacts raises serious concerns about the Trump administration's willingness to interfere with the Fed's independence and ability to conduct objective economic analysis. This incident highlights the fragile state of central bank autonomy in the current political climate.
