Kevin Hassett says Fed researchers should be 'disciplined' over report that Americans are paying tariffs [View all]

Source: CNN Business

PUBLISHED Feb 18, 2026, 3:38 PM ET


National Economic Council Director Kevin Hassett said Wednesday that researchers at the New York Federal Reserve who produced a study finding American businesses and consumers are shouldering 90% of the cost of President Donald Trump’s tariffs should be “disciplined.”

“It’s, I think, the worst paper I’ve ever seen in the history of the Federal Reserve system,” Hassett told CNBC in an interview. “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,” Hassett continued. The New York Fed and the Fed Board of Governors declined to respond to CNN about Hassett’s comments.

Hassett’s primary concern with the research was, in his view, that it only focused on price-related effects of tariffs and not changes in the volume of imports.

However, that’s not entirely true. In assessing the tariff burdens, the authors calculate average duty rates over various periods of time. They define that as “the total monthly tariff revenue divided by the total value of imports in the month,” meaning import volume is taken into consideration. Specifically, they looked at how “global supply chains shifted in response to the higher tariffs.”

Read more: https://www.cnn.com/2026/02/18/economy/hassett-fed-researchers-disciplined