Kevin Hassett Calls for Disciplinary Action Against Federal Reserve Researchers

Kevin Hassett, the director of the National Economic Council, criticized a recent study from the Federal Reserve Bank of New York, which indicated that American businesses and consumers bear 90% of the costs of tariffs imposed by President Trump. Hassett described the report as 'the worst document' he has seen in the Federal Reserve's history and suggested disciplinary measures for its authors, claiming the analysis was politically biased. He argued that the study failed to adequately consider the impact of tariffs on import volumes. This controversy arises amidst Trump's ongoing attacks on the Federal Reserve's independence, including recent nominations and investigations related to its governance.

Key Details: • Hassett's comments were made during a CNBC interview on Wednesday. • The study in question focused on the economic effects of tariffs on prices and import volumes. • Kevin Warsh has been nominated to replace Jerome Powell as Federal Reserve Chair. • The confirmation of Warsh requires Senate approval.