Hassett Unleashes on NY Fed’s ‘Embarrassing’ Tariff Study Attacking Trump Tariff Policy

‘This paper is an embarrassment – I’ve seen freshmen do better work!’ – Kevin Hassett, White House National Economic Council Director

Wall Street Academics Under Fire After Scathing Rebuke From President Trump’s Top Advisor

In a stunning rebuke delivered straight from the White House, President Donald Trump’s trusted top economic adviser, Kevin Hassett, has slammed a newly-released study from the Federal Reserve Bank of New York as, in his words, “an embarrassment” unworthy of even a first-year economics student. This fiery exchange is the latest volley in the high-stakes battle over who really pays for the tariffs that have become Trump’s signature move to protect American jobs and industries from predatory foreign trade practices.

The New York Fed’s controversial paper, published just last week, claims that American companies and hardworking families have borne the brunt of Trump’s tariffs – supposedly absorbing a jaw-dropping 90% of the costs. The mainstream media wasted no time heralding the report, citing its conclusion that U.S. consumers face the biggest burden from tariff policy rather than foreign exporters. But in Washington, Hassett’s response was blunt and unyielding: the paper is, he says, ‘highly partisan,’ riddled with flaws, and the result of shoddy, politicized economics.

Hassett declared with force, “If this was turned in as an assignment in a first-semester econ class, it would have failed. The people associated with it should be disciplined.”

While the mainstream media and left-leaning economists rush to echo these findings, conservatives are pushing back hard, questioning the motives and the methodology of the researchers. And one thing is clear – with a reelected Trump administration, this kind of academic grandstanding isn’t going unchallenged any longer.

NY Fed Study’s Explosive Claims: Media Flocks, Conservatives Cry Foul

The study in question – now making the rounds in every liberal newsroom and social media feed – purports that nearly 90% of Trump’s tariffs are hitting American wallets. It concludes that both businesses and ordinary families pay the price, not foreign governments or multinational corporations. The New York Fed’s economists arrived at these figures by tracking increases in import costs and consumer prices since the 2025 tariff hikes went into effect.

But Hassett isn’t having any of it. He calls the analysis deeply flawed, accusing the authors of using faulty data and pushing a narrative tailor-made to damage Trump’s bold America First trade strategy. And when national economic security is at stake, that’s more than just academic incompetence – it’s irresponsible:

“This analysis wouldn’t be accepted in a first-semester econ class.” Hassett argued. “The idea that U.S. consumers are footing the whole bill ignores how tariffs bring production and jobs back home, raising American wages and rebuilding industry.’

Supporting Hassett, conservative voices across talk radio, finance, and social media are sounding the alarm: Is the New York Fed trying to undermine the Trump’s America First agenda with “drive-by research” that ignores the realities on Main Street? Many Americans remember how globalist policies gutted factories and small towns – and they’re not in the mood for more Wall Street-fed gloom and doom.

Despite the clamor, the New York Fed has refused to respond to requests for comment. Meanwhile, the White House points to a growing body of data showing tariffs have revitalized U.S. manufacturing, increased job creation, and brought vital supply chains back under American control.

Narrative Wars: Tariffs, ‘Fake’ Studies, and the 2026 Political Chessboard

The backdrop for this dramatic collision isn’t just economics – it’s an all-out war for the soul of U.S. policy as we push further into President Trump’s historic second term. The attacks on the Federal Reserve from Trump’s team aren’t new; the administration has spent years fending off what it sees as elite efforts to undermine policies that finally put America first. Hassett’s latest salvo is just the most recent front in this ongoing conflict.

Hassett is widely respected as a serious economic thinker – hardly one to make partisan swipes lightly. His demand for disciplinary action against the Fed paper’s authors signals just how seriously the White House views this attempt to rewrite the narrative about tariffs. If President Trump’s advisers are correct, studies like this one threaten to obscure hard-won blue-collar economic gains with Beltway bias and academic groupthink.

‘Hassett’s remarks represent the latest attack on the Federal Reserve from an administration that has repeatedly sought to influence the central bank,’ reported the Washington Post.

Social media has erupted with conservatives backing Hassett’s call for accountability. On X (formerly Twitter), hashtags like #FedFail and #TariffTruth are trending. “The Fed needs to spend more time meeting real US businesses – not sitting in NYC writing hit pieces,” thundered one popular account. Another commented, “America went from losing jobs overseas to winning them back. The numbers speak for themselves.”

Hassett has also made it clear that, far from harming Americans, tariffs have been designed to boost domestic production, raise demand, and drive up the wages of hardworking U.S. workers. This key piece of the Trump economy isn’t just talking points – it’s policy that’s already reversing decades of outsourcing and decay.

It’s no surprise the NY Fed’s conclusions are being echoed by liberal think-tanks and allies in the press. Even some AI-generated articles (as disclosed by Investing.com) have played up the supposed consumer cost angle, but the administration is adamant: Americans are finally reaping the benefits of fair trade enforcement, after years of globalist betrayal.

Tariff Wars and the Next Election: Why This Flashpoint Matters for All Americans

The timing of this broadside is impossible to ignore. With the 2026 Congressional midterms barreling down the pike, Democrats are looking for any narrative to undermine Trump’s economic gains, especially as his tariffs proved popular in the industrial heartland. The current controversy isn’t just a technical quarrel between economists – it’s a slap in the face to working families who’ve seen real job growth and higher pay under the Trump agenda.

There are echoes in this skirmish of the broader challenges facing any administration willing to take on the entrenched interests of the federal bureaucracy and coastal elites. Americans cannot afford to let out-of-touch academic institutions dictate national policy – not when the health of the nation’s manufacturing base hangs in the balance. As Hassett hammered home, policymakers must put facts ahead of political theater.

‘The New York Fed did not immediately respond to requests for comment regarding Hassett’s remarks,’ Reuters confirmed. The silence speaks volumes.

As the feud escalates, expect tariffs, trade, and the war over economic truth to stay in the headlines right through the election cycle. With President Trump and his allies refusing to back down, and left-leaning academics angling to control the narrative, the American people will have to decide whose numbers – and whose vision – they believe. If recent history is any guide, Main Street isn’t easily fooled by Beltway scare tactics.

Bottom line: The White House is putting the New York Fed – and the rest of the academic establishment – on notice: When it comes to America’s future, they won’t let “embarrassing” research go unanswered. America First is more than a slogan – it’s a lived reality. As the election storm brews, that fight is only just beginning.