Economic Council Director Critiques Fed Study on Tariff Costs to Americans

Kevin Hassett, the Director of the National Economic Council, has publicly criticized a study from the New York Federal Reserve that claims American consumers and businesses bear 90% of the costs from tariffs imposed during the Trump administration. He described the paper as 'the worst' he has seen, suggesting that its conclusions are politically biased and lack academic rigor. Hassett's main contention is that the study inadequately considers the volume of imports affected by tariffs, although the authors did account for this in their analysis. This controversy comes as President Trump has nominated Kevin Warsh, a critic of the Fed, to replace Jerome Powell as Fed Chair, amid ongoing tensions between the administration and the Federal Reserve's independence.