Kevin Hassett faces blowback for calling for New York Fed to be ‘disciplined’
Who benefits from this decision?
National Economic Council Director Kevin Hassett is facing blowback for saying that Federal Reserve Bank of New York staff should be “disciplined” for a tariff report that was unfavorable to the White House.
The criticism comes at a time when the Fed’s independence from the White House is a politically fraught topic. Hassett made the remarks on Wednesday about New York Fed research that found the Trump administration’s tariff policies hurt U.S. companies, calling the report an “embarrassment.”
‘DEAD WOOD’: WARSH WOULD SHAKE UP FED STAFFING
Federal Reserve Bank of Minneapolis President Neel Kashkari panned Hassett’s comments at a Thursday event in North Dakota. Kashkari defended the research of the regional banks and drew a direct line between attacks against the Fed and the White House’s desire for lower interest rates.
“This is just another step to try to compromise the Fed’s independence,” Kashkari said. “Over the last year, we’ve seen multiple attempts to try to compromise the Fed’s independence.”
“It’s really about monetary policy,” he added.
Hassett also said the authors of the research should be punished, another escalation in the Trump administration’s fight with the Federal Reserve system.
“I mean, the paper is an embarrassment,” Hassett said Wednesday on CNBC when asked about the New York Fed analysis. “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 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.”
The paper was published last week and has received news coverage for finding that over 90% of the costs of the tariffs were being passed along to U.S. companies and consumers rather than foreign exporters during the first 10 months of 2025. That number fell to 86% in November, according to the study.
Kashkari said that regional Fed research is done to “get better and learn about the economy” by having a wide range of opinions.
“We are doing our very best to make the best assessment of the economy based on data and analysis,” he said.
Douglas Holtz-Eakin, the president of the center-right American Action Forum, also condemned Hassett’s remarks in a memo on Thursday.
“The only one who should be embarrassed is Kevin Hassett, the smell of whom’s burning reputation flavors the air of DC, and …
Who benefits from this decision?
National Economic Council Director Kevin Hassett is facing blowback for saying that Federal Reserve Bank of New York staff should be “disciplined” for a tariff report that was unfavorable to the White House.
The criticism comes at a time when the Fed’s independence from the White House is a politically fraught topic. Hassett made the remarks on Wednesday about New York Fed research that found the Trump administration’s tariff policies hurt U.S. companies, calling the report an “embarrassment.”
‘DEAD WOOD’: WARSH WOULD SHAKE UP FED STAFFING
Federal Reserve Bank of Minneapolis President Neel Kashkari panned Hassett’s comments at a Thursday event in North Dakota. Kashkari defended the research of the regional banks and drew a direct line between attacks against the Fed and the White House’s desire for lower interest rates.
“This is just another step to try to compromise the Fed’s independence,” Kashkari said. “Over the last year, we’ve seen multiple attempts to try to compromise the Fed’s independence.”
“It’s really about monetary policy,” he added.
Hassett also said the authors of the research should be punished, another escalation in the Trump administration’s fight with the Federal Reserve system.
“I mean, the paper is an embarrassment,” Hassett said Wednesday on CNBC when asked about the New York Fed analysis. “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 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.”
The paper was published last week and has received news coverage for finding that over 90% of the costs of the tariffs were being passed along to U.S. companies and consumers rather than foreign exporters during the first 10 months of 2025. That number fell to 86% in November, according to the study.
Kashkari said that regional Fed research is done to “get better and learn about the economy” by having a wide range of opinions.
“We are doing our very best to make the best assessment of the economy based on data and analysis,” he said.
Douglas Holtz-Eakin, the president of the center-right American Action Forum, also condemned Hassett’s remarks in a memo on Thursday.
“The only one who should be embarrassed is Kevin Hassett, the smell of whom’s burning reputation flavors the air of DC, and …
Kevin Hassett faces blowback for calling for New York Fed to be ‘disciplined’
Who benefits from this decision?
National Economic Council Director Kevin Hassett is facing blowback for saying that Federal Reserve Bank of New York staff should be “disciplined” for a tariff report that was unfavorable to the White House.
The criticism comes at a time when the Fed’s independence from the White House is a politically fraught topic. Hassett made the remarks on Wednesday about New York Fed research that found the Trump administration’s tariff policies hurt U.S. companies, calling the report an “embarrassment.”
‘DEAD WOOD’: WARSH WOULD SHAKE UP FED STAFFING
Federal Reserve Bank of Minneapolis President Neel Kashkari panned Hassett’s comments at a Thursday event in North Dakota. Kashkari defended the research of the regional banks and drew a direct line between attacks against the Fed and the White House’s desire for lower interest rates.
“This is just another step to try to compromise the Fed’s independence,” Kashkari said. “Over the last year, we’ve seen multiple attempts to try to compromise the Fed’s independence.”
“It’s really about monetary policy,” he added.
Hassett also said the authors of the research should be punished, another escalation in the Trump administration’s fight with the Federal Reserve system.
“I mean, the paper is an embarrassment,” Hassett said Wednesday on CNBC when asked about the New York Fed analysis. “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 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.”
The paper was published last week and has received news coverage for finding that over 90% of the costs of the tariffs were being passed along to U.S. companies and consumers rather than foreign exporters during the first 10 months of 2025. That number fell to 86% in November, according to the study.
Kashkari said that regional Fed research is done to “get better and learn about the economy” by having a wide range of opinions.
“We are doing our very best to make the best assessment of the economy based on data and analysis,” he said.
Douglas Holtz-Eakin, the president of the center-right American Action Forum, also condemned Hassett’s remarks in a memo on Thursday.
“The only one who should be embarrassed is Kevin Hassett, the smell of whom’s burning reputation flavors the air of DC, and …
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