"After the New York Federal Reserve released a blog post last week that found Americans are eating the super-majority (90%) of the cost of President Donald Trump's tariffs, White House National Economic Council Director Kevin Hassett condemned the findings and lambasted the researchers involved in the study. "The paper is an embarrassment," Hassett told CNBC on Wednesday. "It's, I think, the worst paper I've ever seen in the history of the Federal Reserve System." He went as far as to suggest that the authors of the report should face repercussions for their work. "The people associated with this paper should presumably be disciplined," he said."
"The exact findings from the New York Fed show a dire scenario for Americans. In the blog post, titled "Who Is Paying for the 2025 U.S. Tariffs?" Fed researchers Mary Amiti, Chris Flanagan, Sebastian Heise, and David E. Weinstein found that more than 90% of the economic burden from tariffs fell on American households and businesses after the average tariff rate in 2025 spiked from 2.6% in the beginning of the year to 13%, according to customs data."
Kevin Hassett condemned New York Federal Reserve research that estimated Americans absorb over 90% of the cost of President Donald Trump's tariffs, calling the work an embarrassment and the worst paper he has seen in the Fed's history. He said the researchers should be disciplined. Fed researchers Mary Amiti, Chris Flanagan, Sebastian Heise, and David E. Weinstein found average tariff rates rose in 2025 from 2.6% to 13%, and that U.S. firms and consumers bear the bulk of the economic burden. The White House reaction follows prior disputes over tariff analyses and criticisms of the Federal Reserve.
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