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Hassett Calls for Disciplining New York Fed Economists Over Tariff Study Finding 90% U.S. Burden

An expected Supreme Court ruling could curb unilateral tariff moves, raising stakes for the White House response.

Overview

  • On CNBC, senior Trump adviser Kevin Hassett called the New York Fed paper the worst he has seen and said its authors should be disciplined.
  • The Feb. 12 analysis by New York Fed economists estimated roughly 90% of the 2025 tariff costs were passed to U.S. companies and consumers, with the effect easing slightly over the year.
  • Hassett argued the study wrongly assumes fixed quantities and claimed tariffs brought production home, lowered prices, and lifted real wages.
  • Economists widely conclude tariffs mostly fall on domestic consumers, and recent reports cite data indicating growth has been hurt.
  • Reporting indicates the Supreme Court could soon limit unilateral tariff authority, and sources say the White House is preparing ways to respond.