Democratic members of the U.S. Senate Committee on Banking, Housing and Urban Affairs published a letter to White House National Economic Council Director Kevin Hassett pressing him to formally retract his suggestion that Federal Reserve staff be “disciplined” for producing an analysis of the costs of tariffs. The lawmakers framed the remarks as undermining the independence and integrity of Federal Reserve research and asked whether the White House has interfered with economic data produced by the Federal Reserve or other agencies. The letter points to a February 12, 2026 report from the Federal Reserve Bank of New York examining 2025 tariff-related price increases, which concluded that 90% of the tariffs’ economic burden fell on U.S. firms and consumers and that costs are largely borne by U.S. importers and passed down supply chains. It also cites external estimates including the Yale Budget Lab’s median cost of USD 1,400 per household, the Kiel Institute’s estimate that U.S. businesses and consumers pay 96% of tariff costs, and National Bureau of Economic Research findings of roughly 94% passthrough, as well as reporting that companies raised prices in 2025 and expected to continue doing so in 2026. Hassett is asked to respond within 30 days to four questions, including whether he agrees his comments were inappropriate, whether Federal Reserve staff should ever be disciplined for their analyses, whether the White House has pressured agencies such as the Bureau of Labor Statistics, and how his recent comments align with his earlier statements supporting Federal Reserve independence.

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