Hassett Publicly Rebukes New York Fed Study on Tariff Burden
Public confrontation — A top economic adviser leveled strong public criticism at work produced by the New York Fed, calling the analysis unsound and suggesting personnel consequences. The remarks landed in a televised interview and immediately drew attention across policy and financial media. That pushback took aim at a key quantitative claim: the study estimated that roughly 90% of the tariff burden fell on domestic buyers and companies.
Methodology debate — The adviser’s chief technical gripe centered on how the paper handled price effects versus trade volumes, saying the approach missed crucial dynamics. Authors of the research, however, used a measure tying monthly tariff receipts to import values and explicitly examined shifts in supply chains and volumes. Independent readers will note that both price pass-through and changes in import quantities matter for incidence calculations.
Broader context and stakes — The clash is not isolated: it arrives while the administration is actively contesting aspects of central-bank governance and advocating for new leadership. The critique amplifies questions about the independence of regional Fed research groups and whether political actors will seek to influence or discipline analysts. Market participants and policymakers will watch for second-order effects on research transparency, publication choices, and the willingness of economists inside the system to tackle politically sensitive topics.
Read Our Expert Analysis
Create an account or login for free to unlock our expert analysis and key takeaways for this development.
By continuing, you agree to receive marketing communications and our weekly newsletter. You can opt-out at any time.
Recommended for you
New York Fed: Americans bore nearly 90% of 2025 reciprocal-tariff bill
A New York Fed analysis finds roughly 90% of the cost of the 2025 reciprocal tariffs was passed through to U.S. households and firms during Jan–Nov 2025. State-level impacts concentrated about $199 billion of exposure through November, and negotiated caps and private-sector adjustments softened — but did not eliminate — the immediate domestic burden.
Warren Presses Fed Nominees to Pledge Protection for Regional Research
Sen. Elizabeth Warren is demanding that incoming Federal Reserve nominees commit to protecting the independence of research produced at regional Reserve Banks after a White House economic official publicly assailed a New York Fed paper. The dispute — amplified by warnings from regional Fed leaders, a Justice Department inquiry and tense Senate testimony from Treasury officials — raises the odds of a contentious confirmation fight and could deepen pressures that chill politically sensitive Fed studies.
