Hassett says New York Fed staff should be disciplined over study finding Americans paid for Trump's tariffs

In a heated critique that underscores the ongoing economic tensions surrounding trade policy, White House economist Kevin Hassett has launched a scathing attack on a recent Federal Reserve Bank of New York study examining the economic burden of tariffs. The research, which concludes that American companies and consumers have shouldered nearly 90% of the tariff costs, has drawn sharp rebuke from the Trump administration's economic team.

The Fed study, titled "Who is Paying for the 2025 U.S. Tariffs?", presents a comprehensive analysis that aligns with broader market assessments of economic policy impacts. Hassett's extraordinary criticism—calling it "the worst paper in the history of the Federal Reserve system"—suggests deep ideological tensions surrounding trade policy interpretation.

With the Supreme Court potentially ruling on Trump's tariff policies this week, the stakes are high. The conservative-majority court is examining whether the president exceeded his authority under the International Emergency Economic Powers Act, a decision that could have significant ramifications for future trade strategies.

For precious metals investors, this controversy highlights the complex interplay between Federal Reserve policy assessments and broader economic strategy. The tariff study suggests that protective trade measures often create internal economic pressures, potentially impacting commodity and investment markets.

While Hassett argues the New York Fed staff should face disciplinary action, independent economists continue to validate the study's methodology. The research joins two other academic studies confirming similar findings about tariff incidence, suggesting a robust consensus beyond political rhetoric.