‘Worst paper I’ve ever seen’

White House economic advisor Kevin Hassett recently criticized a New York Federal Reserve paper that claimed U.S. companies and consumers are bearing the brunt of tariff costs. In an interview with CNBC, Hassett slammed the report, stating that the researchers failed to consider important factors such as the positive impact tariffs have on wages and benefits for American workers.

Hassett described the paper as an “embarrassment” and claimed it was the worst he had ever seen in the history of the Federal Reserve system. He called for the authors to be “disciplined” for producing a conclusion that he believes is based on flawed analysis.

The paper, which was published on the New York Fed’s website in February, examined the effects of tariffs on prices and found that 90% of the additional costs were being passed on to consumers and businesses. However, Hassett argued that the tariffs have actually led to a decrease in prices and an increase in real wages, resulting in a better standard of living for Americans.

Despite the findings of the New York Fed paper, data from the Bureau of Labor Statistics shows that the consumer price index has only risen modestly since the tariffs were implemented in April 2025. Import prices have remained flat, while export prices have seen a slight increase.

A spokesperson for the New York Fed declined to comment on Hassett’s remarks.

Overall, the debate over the impact of tariffs on the U.S. economy continues to be a contentious issue, with conflicting opinions from policymakers and researchers. It remains to be seen how the ongoing trade tensions will affect American businesses and consumers in the long run.