Dragonlady
Designing Woman
White House economic advisor Kevin Hassett said Wednesday that the authors of a recent New York Federal Reserve paper that found U.S. companies and consumers are shouldering most of the tariff burden should be “disciplined.”
In a CNBC interview, the National Economic Council director ripped the report, saying that central bank researchers ignored key aspects of how the duties worked and instead simply focused on prices. Hassett said the research also should have included the upward impact on wages and benefits that U.S. companies see by bringing more production onshore.
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Hassett says authors of New York Fed tariff study should be disciplined: 'Worst paper I've ever seen'
The NEC director ripped the report, saying that central bank researchers ignored key aspects of how the duties workedwww.cnbc.com
The regime doesn't like what the report said. That doesn't make it wrong.
What makes Hassett's criticism of the Federal Reserve paper laughable is his assertion that the Fed needed to consider the impact of job creation and higher wages in determining the effect of the tariffs.
Given that manufacturing jobs have shown negative growth since Trump started his trade war, and investment in US manufacturing has DECLINED since that time, I certainly hope that the Fed took this into consideration.
Wages have gone up but have not kept pace with price increases.
- Wages vs. Costs: Analysis indicates that while U.S. wages rose by approximately 6.3% in the year following the tariff announcement, this was accompanied by a 7.1% increase in U.S. prices, resulting in a decline in real wages for many, according to the Center for Strategic and International Studies (CSIS).
Trade and International Business: Research & Analysis | CSIS
Reciprocal tariffs, threats to global supply chains, and comparative manufacturing advantages have disrupted the established global trade system. CSIS scholars provide analysis and commentary on the international trading system and its institutions.
There isn't a real economist in the world who thinks that Trump's tariffs are doing anything but harming the US economy.
