Bad Boy Gives his Bad Report Card a Bad Report

In a dramatic display of economic spin, White House economic advisor Kevin Hassett has launched a scathing critique of a New York Federal Reserve report detailing the devastating impact of Trump-era tariffs on U.S. businesses and consumers. The report, which meticulously documented how American importers are absorbing over 94% of tariff costs, has been met with a desperate attempt to deflect criticism.

The Fed's research directly challenges the Trump administration's longstanding narrative that tariffs have no inflationary impact. By revealing that foreign sellers are only absorbing roughly 6% of tariff costs through price discounts, the study exposes the fundamental economic fallacy of the administration's trade policy. Hassett's response – suggesting the researchers should be disciplined – represents a textbook example of attacking the messenger when the message is inconvenient.

For precious metals investors, this conflict illuminates a critical market dynamic: trade policies have profound ripple effects across commodity markets. The tariff burden's concentration on U.S. importers suggests increased economic pressure that could drive investors toward traditional safe-haven assets like silver and gold as a hedge against policy-induced volatility.

The report's key finding – that domestic companies and consumers are predominantly shouldering tariff costs – undermines political claims of trade policy effectiveness. By forcing American businesses to absorb these expenses, the tariffs effectively function as an internal tax, potentially constraining economic growth and investment capacity.

Looking forward, the silver and precious metals markets should closely monitor these policy tensions. Increasing economic unpredictability and potential trade friction could further bolster demand for alternative investment vehicles that offer stability during political and economic uncertainty.