Finance

Hassett urges discipline over NY Fed tariff study as pass-through findings loom

White House adviser Kevin Hassett criticized a New York Fed tariff study, calling it an embarrassment and urging researchers to maintain discipline. The remarks, aired on CNBC’s Squawk Box, underscore a broader debate over tariff pass-through and its implications for inflation readings and Fed policy.

📅 February 19, 2026
⏱️ 2 min read
Hassett urges discipline over NY Fed tariff study as pass-through findings loom

Key Takeaways

  • Hassett called the NY Fed tariff study an embarrassment and urged researchers to maintain discipline.
  • The report's pass-through findings, if substantiated, could affect inflation readings and the Fed's policy path.
  • The assertions rely on anonymous sources and remain unverified.

People Involved

  • Kevin Hassett White House economic adviser
  • New York Fed researchers Economists at the Federal Reserve Bank of New York
  • Donald J. Trump President (former)
  • Congressional Budget Office (CBO) U.S. nonpartisan budget office

Entities Involved

  • New York Fed (Federal Reserve Bank of New York) Regional central bank conducting tariff incidence study
  • Congressional Budget Office (CBO) U.S. nonpartisan budget office cited on tariff costs and pass-through
  • CNBC Television network that aired Hassett's remarks

MarketMoodz Analysis

For investors, the disputed tariff pass-through could influence how inflation signals are priced, potentially shaping the Fed's rate path if tariffs are perceived as a persistent driver of domestic prices. Because the NY Fed study's findings are not independently verified, markets will discount the results until corroborating data or official reviews emerge.

Historically, tariff analyses have been contested, with different agencies producing varying estimates of pass-through to prices and profits. If new evidence aligns with Hassett's critique, traders may reassess the credibility of inflation metrics like PCE and adjust expectations for rate cuts or hikes, impacting yields and equity risk premia.

What to watch next: any official verification of the NY Fed findings, further CBO analysis, and ongoing Fed communications on inflation and the pass-through effect will guide market expectations and policy paths.

Source: Original Article

Get AI-Powered Market Insights

Stay ahead of market-moving events with our real-time analysis and stock ratings.

Start Your Free Trial