Senate Democrats Rebuke NEC Director's Call to Discipline Fed Researchers

Senate Democrats accused National Economic Council Director Kevin Hassett of undermining the Federal Reserve's independence by suggesting that Fed researchers be disciplined for a study finding that "American consumers and businesses are bearing the economic burden of President Trump’s chaotic tariffs." 

In the letter, the Senators expressed concern that the administration is attempting to "suppress negative economic data" from the American public. They highlighted a February 12 study by the Federal Reserve Bank of New York, which concluded that "90 percent of the tariffs’ economic burden fell on U.S. firms and consumers." The lawmakers asserted that demanding retribution against non-partisan staff is part of a broader "effort to take over the Federal Reserve." They warned that such comments generate market uncertainty and suggest the administration is more interested in hiding the costs of its tariff regime than meaningfully lowering prices for families.

The Senators also criticized the contradictory nature of Mr. Hassett's remarks, noting that his threat starkly contrasts his September 2025 statement that the central bank should be "fully independent of political influence." They pointed out that multiple independent institutions have reached similar conclusions regarding the financial impact of the tariffs. The lawmakers requested that Mr. Hassett provide specific answers regarding (i) whether his comments were inappropriate and whether he will refrain from influencing objective economic data; (ii) whether Fed staff should be disciplined for their analyses; (iii) whether the White House has pressured other data agencies to align data with policy objectives; and (iv) how his remarks align with his prior statements supporting Fed independence.

The Senators asked Mr. Hassett to provide responses to these inquiries within 30 days.