WH adviser Hassett urges 'discipline' for Fed economists over tariff study
#Trump tariffs #Federal Reserve #Economic research #Trade policy #Consumer costs #Hassett #Tariff impact #Central bank independence
📌 Key Takeaways
- Trump's economist called for punishment of Fed economists
- Research showed Americans bear 90% of tariff costs
- Finding contradicts administration's tariff narrative
- Incident highlights tension between White House and independent economic institutions
📖 Full Retelling
🏷️ Themes
Trade Policy, Economic Independence, Political Pressure
📚 Related People & Topics
Commercial policy
Government's policy governing international trade
A commercial policy (also referred to as a trade policy or international trade policy) is a government's policy governing international trade. Commercial policy is an all encompassing term that is used to cover topics which involve international trade. Trade policy is often described in terms of a ...
Federal Reserve
Central banking system of the US
The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to th...
Consumer price index
Statistic to indicate the change in typical household expenditure
A consumer price index (CPI) is a statistical estimate of the level of prices of goods and services bought for consumption purposes by households. It is calculated as the weighted average price of a market basket of consumer goods and services. Changes in CPI track changes in prices over time.
Tariffs in the Trump administration
Topics referred to by the same term
Tariffs in the Trump administration could refer to:
Entity Intersection Graph
Connections for Commercial policy:
Deep Analysis
Why It Matters
The call for discipline highlights a clash between the Treasury and the Federal Reserve over the analysis of tariff costs, underscoring the importance of independent economic research in shaping trade policy. It signals that the administration is willing to scrutinize Fed economists for findings that may contradict its own trade agenda.
Context & Background
- Trump administration imposed new tariffs last year
- Fed economists conducted a study on the economic impact of those tariffs
- The study concluded that U.S. companies and consumers bear almost all of the cost
What Happens Next
The Federal Reserve may review its research protocols and consider disciplinary measures for the economists involved. The incident could prompt a broader discussion about the independence of Fed research and its role in informing policy decisions.
Frequently Asked Questions
Hassett is President Trump's top economist and head of the Office of Management and Budget.
The study found that American companies and consumers pay nearly all of the costs of the new tariffs imposed by the White House.
Potential disciplinary action against Fed economists, a review of research practices, and increased scrutiny of Fed studies related to trade policy.