Watch CNBC's full interview with White House National Economic Council Director Kevin Hassett

In a fiery defense of the Trump administration's trade policy, White House National Economic Council Director Kevin Hassett launched a scathing critique of a recent New York Federal Reserve study, dismissing its claims about tariff impact as academically incompetent and politically motivated. Hassett's interview on CNBC's 'Squawk Box' revealed a robust counterargument to the study's assertion that 90% of tariff burdens fall on U.S. firms and consumers.

The White House official characterized the Federal Reserve paper as an 'embarrassment', arguing that its methodology fundamentally misunderstands basic economic principles. Economic growth strategies remain at the core of the administration's trade approach, with Hassett emphasizing that President Trump's tariffs are designed to shift manufacturing demand back to domestic producers.

Hassett highlighted key economic metrics to support his argument, noting that real wages increased by an average of $1,400 last year and that import prices have actually decreased. His critique suggests that the Federal Reserve study failed to account for the dynamic shifts in supply and demand triggered by tariff implementations.

The robust defense underscores the ongoing tension between different economic interpretations of trade policy, with significant implications for industrial metals markets and broader economic strategy. By challenging the New York Fed's analysis, Hassett signals the administration's continued commitment to a protectionist trade framework.

For precious metals investors, this debate highlights the complex interplay between trade policy, manufacturing demand, and broader economic indicators. The White House's aggressive stance suggests continued market volatility and potential opportunities in sectors sensitive to trade negotiations and tariff dynamics.