White House Adviser Calls for Punishment of Fed Researchers Over Tariff Analysis

Kevin Hassett criticizes New York Fed paper that found consumers paid 90% of Trump tariff costs

Published on Feb. 23, 2026

Got story updates? Submit your updates here. ›

President Trump's top economic adviser, Kevin Hassett, has called for the Federal Reserve researchers who authored a paper critical of Trump's tariffs to be "disciplined." The paper, written by economists at the Federal Reserve Bank of New York, found that consumers paid 90% of the cost of Trump's import taxes. Hassett condemned the paper as an "embarrassment" and said the researchers' conclusions "wouldn't be accepted in a first-semester econ class."

Why it matters

Hassett's comments represent the latest White House attack on the Federal Reserve's independence, as the Trump administration has sought greater control over the central bank. The criticism also highlights ongoing tensions between the administration's trade policies and economic analysis from government researchers.

The details

The paper in question was written by three researchers at the Federal Reserve Bank of New York and an economics professor at Columbia University. Regional Fed branches often publish research from staff and affiliated economists, but those reports are not considered official stances from the broader Fed system. Hassett argued the New York Fed's research erred by focusing only on how much Trump's tariffs have increased prices while ignoring their role in boosting U.S. manufacturing. He also claimed both prices and inflation have gone down because of the tariffs, despite data showing manufacturing employment declined during Trump's first year and inflation remaining elevated.

  • In a Thursday interview on February 18, 2026, National Economic Council Director Kevin Hassett condemned the New York Fed paper.
  • The paper was published in 2026.

The players

Kevin Hassett

President Trump's top White House economic adviser and former director of the White House Council of Economic Advisers.

Federal Reserve Bank of New York

One of the 12 regional reserve banks in the broader Federal Reserve system that often publishes research from staff and affiliated economists.

Columbia University

The university where one of the authors of the criticized paper is an economics professor.

Got photos? Submit your photos here. ›

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.”

— Kevin Hassett, National Economic Council Director (CNBC)

“The Fed Chair has the ability to suppress research from the Fed. Will he if it disagrees with White House?”

— Claudia Sahm, Former Fed research director (Twitter)

What’s next

The Senate is expected to question Federal Reserve chair nominee Kevin Warsh about the White House's criticism of the New York Fed paper during his eventual confirmation hearing.

The takeaway

Hassett's comments represent the latest escalation in the Trump administration's efforts to exert greater control over the independent Federal Reserve, raising concerns about the potential politicization of economic research and analysis.