Story perspectives

White House Adviser Slams Fed Study as Flawed

2/19/2026

Summary

Story summary

Kevin Hassett, White House economic adviser, condemned a New York Federal Reserve study as the worst paper in Federal Reserve history.
In a CNBC interview, Hassett argued the study's methodology was flawed, focusing on price effects and ignoring domestic production and wage increases.
He said tariffs have benefited consumers, citing a $1,400 rise in real wages last year.
He called for disciplinary action against study authors to ensure rigorous analysis.

History

Historical Context

The Federal Reserve Act, signed by President Woodrow Wilson on December 23, 1913, established the Federal Reserve System to stabilize the U.S. economy following the Panic of 1907, which caused a 50% drop in stock prices. This act created a decentralized banking structure, balancing public oversight with private control, and has since sparked ongoing debates about its effectiveness in managing monetary policy and economic stability.

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Story summary

Kevin Hassett, White House economic adviser, condemned a New York Federal Reserve study as the worst paper in Federal Reserve history.
In a CNBC interview, Hassett argued the study's methodology was flawed, focusing on price effects and ignoring domestic production and wage increases.
He said tariffs have benefited consumers, citing a $1,400 rise in real wages last year.
He called for disciplinary action against study authors to ensure rigorous analysis.

1 / 2