White House Advisor Calls for Discipline of Fed Economists Over Tariff Study

Kevin Hassett criticizes New York Fed research paper that found U.S. businesses and consumers bore bulk of tariff burden

Published on Feb. 24, 2026

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White House economic advisor Kevin Hassett called for the New York Federal Reserve to punish economists who published a research paper finding that the bulk of the burden of the Trump administration's tariffs are falling on U.S. businesses and consumers. Hassett described the paper as an "embarrassment" and said the economists responsible should be "disciplined" for their analysis.

Why it matters

The New York Fed study contradicts the Trump administration's claims that tariffs have benefited American consumers. Hassett's comments highlight the ongoing political tensions around the economic impact of the administration's trade policies.

The details

The New York Fed research found that U.S. businesses and consumers bore 86% of the tariff burden as of November 2025, with that share declining from 94% earlier in the year. The study also found that the average tariff rate jumped from 2.6% at the start of 2025 to 13% by the end of the year. Hassett defended the tariffs, claiming they have lowered prices and increased real wages for consumers.

  • The New York Fed research paper was published in February 2026.
  • The average tariff rate peaked at around 16% in April and May 2025.

The players

Kevin Hassett

White House economic advisor who criticized the New York Fed research paper on tariffs.

New York Federal Reserve

The regional Federal Reserve bank that published the research paper finding U.S. businesses and consumers bore the bulk of the tariff burden.

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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.”

— Kevin Hassett, White House economic advisor (CNBC)

“The people associated with this paper should presumably be disciplined, because what they've done is they've 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, White House economic advisor (CNBC)

What’s next

The New York Fed has not indicated whether it will take any disciplinary action against the economists who authored the tariff study.

The takeaway

This dispute highlights the ongoing political debate over the economic impacts of the Trump administration's trade policies, with the White House pushing back against research that contradicts its claims about the benefits of tariffs for American consumers.