White House Economic Advisor Calls NY Fed Tariff Study an ‘Embarrassment’

White House economic adviser Kevin Hassett has labeled a recent New York Federal Reserve study on tariff impacts as the worst paper in the history of the Federal Reserve system, demanding disciplinary action against its authors.

In a recent interview, Hassett criticized the report published February 12, which concluded that approximately 90% of the burden from Trump-era tariffs fell on U.S. consumers and businesses rather than foreign exporters. The study found most companies passed increased costs to American buyers, but Hassett argued it ignored how tariffs actually work by focusing solely on prices without accounting for changes in domestic production.

“The paper is an embarrassment,” Hassett said. “I can’t imagine who signed off on it.”

Hassett maintained tariffs have improved economic conditions, citing declining inflation, lower import prices, and a rise in real wages—averaging $1,400 more per year for households. He condemned the Fed report for producing partisan news based on analysis he described as “unacceptable even in a first-semester econ class.”

The New York Fed report concluded that U.S. firms and consumers continue to bear the bulk of the economic burden from high tariffs imposed in 2025.