WH adviser Hassett urges 'discipline' for Fed economists over tariff study
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Director of the National Economic Council Kevin Hassett speaks to reporters at the White House, Wednesday, Feb. 11, 2026, in Washington. (AP Photo/Evan Vucci) WASHINGTON (AP) — President Donald Trump’s top economist on Wednesday urged that Federal Reserve economists be punished for research last week that showed American companies and consumers paying for nearly all the new tariffs imposed by the White House last year.
AI Summary
Main Idea: Kevin Hassett, the White House’s top economist, called for discipline against Federal Reserve economists after a study found U.S. consumers and businesses are paying almost all of Trump’s new tariffs.
Key Points:
- Hassett said the New York Fed paper was an “embarrassment” and the “worst” he had seen from the Federal Reserve system.
- The study found U.S. businesses and consumers are bearing nearly 90% of the tariff burden, while foreign exporters have cut prices only a little.
- The article says the finding adds to tension between the White House and the Federal Reserve, which is meant to stay independent from daily politics.
- The report comes as costs have risen for some goods, and companies like GM and Ford say they have faced billions in tariff costs.
Impact on the People
Negative Impact
White House pressure on the Fed may weaken trust in independent economic research and keep tariff costs high for shoppers, workers, and small businesses.
Positive Impact
Tariff debate and Fed scrutiny could push more public attention toward price pressures and who pays for trade policy.
How did each entity affect people?
Rate how each entity in this article affected the American people.
- Primary:Director Kevin Hassettperson
- Major:Federal Reservegovernment agency or body
Candidate Entities11 candidates · 5 weighted vote min · 70% decision
- Director Kevin HassettpersonPrimaryEvaluated
White House National Economic Council director and the main quoted official urging punishment for Federal Reserve economists.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Federal Reservegovernment agency or bodyMajorEvaluated
The broader institution whose economists are being criticized and whose independence is part of the story.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Federal Reserve Bank of New Yorkgovernment agency or bodyMajorAI selected
Its study on who bears tariff costs is the core research being discussed.
Include 0 (0%)Ignore 0 (0%)5 to threshold - President Donald TrumppersonMajorAI selected
His administration’s tariff policy and repeated attacks on economists are central to the article.
Include 0 (0%)Ignore 0 (0%)5 to threshold - FordcompanyContextCandidate
Cited as a major company saying it has paid tariff costs.
Include 0 (0%)Ignore 0 (0%)5 to threshold - General MotorscompanyContextCandidate
Cited as a major company saying it has paid billions in tariff costs.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Goldman SachscompanyContextCandidate
Mentioned as a prior example in the administration’s criticism of economists.
Include 0 (0%)Ignore 0 (0%)5 to threshold
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