All articles tagged with #new york fed
White House economic adviser Kevin Hassett apologized after initially demanding discipline for authors of a New York Fed study that found tariffs have burdened U.S. businesses and consumers more than the administration acknowledged, saying the Fed’s independence and academic freedom must be preserved even as he criticized the paper.
Neel Kashkari, head of the Minneapolis Fed, condemned White House adviser Kevin Hassett’s suggestion that New York Fed researchers be punished, calling it an effort to undermine the Fed’s independence. He cited DOJ subpoenas related to Fed headquarters as evidence of political pressure, stressed that the Fed must decide based on data, and highlighted the value of diverse research from all 12 regional banks in informing policy.
National Economic Council director Kevin Hassett slammed a New York Fed tariff study as an embarrassment and urged those behind it to be disciplined, arguing the paper misstates who bears tariff costs as US firms and shoppers shoulder most of the burden; the clash comes as tariff litigation goes to the Supreme Court and the Fed debates how to respond to inflation amid rate policy uncertainties.
National Economic Council Director Kevin Hassett slammed a New York Fed study claiming roughly 90% of Trump’s tariffs are paid by American consumers and businesses, calling the paper “the worst” Fed research and arguing its analysis seats an incomplete picture by focusing on price effects while ignoring import-volume changes and supply-chain shifts. The article notes the NY Fed team measured tariff burdens by average duty relative to imports and that Hassett’s critique comes amid broader political tension around Fed independence and leadership, including Trump’s nomination of former Fed governor Warsh for the chair role.
White House economic adviser Kevin Hassett blasted a New York Fed paper claiming Trump tariffs largely fall on U.S. firms and consumers, calling it “an embarrassment” and urging disciplinary action for its authors. The NY Fed study, echoed by other reputable research, says about 90% of the tariff burden has been borne domestically with import prices for tariffed goods rising roughly 11%, and that U.S. households paid the majority of the cost in 2025 before the share moderated later that year. The NY Fed declined to comment.
Trump economic adviser Kevin Hassett called a New York Fed tariff study "embarrassing" and urged the authors be disciplined after the research found U.S. importers bore about 90% of tariff costs, a result that contradicts the White House narrative; some economists say the findings align with standard analysis, while the NY Fed remains independent.
A NY Fed study finds tariffs enacted in 2025 raised the average tariff to 13% and that roughly 90% of the higher costs are paid by U.S. firms and consumers, as exporters kept prices steady and passed tariffs through to buyers. Other analyses (Kiel Institute, NBER) report near-100% pass-through to import prices; Tax Foundation estimates a typical household paid about $1,000 in 2025 and $1,300 in 2026, with an effective tariff rate of 9.9%—the highest since 1946—suggesting limited net benefits from the tariff policy.
The U.S. Treasury signaled a possible intervention in the currency market after the New York Fed asked banks about the cost of exchanging yen for dollars, a move that sent the yen up about 1.6% and underscored concerns that Japanese market turbulence could lift U.S. borrowing costs; while no intervention occurred, the step signals a rare Treasury tool under Scott Bessent as Tokyo's fiscal and BoJ policy frame the risk.
Optimism about household finances in the U.S. has reached its highest level since February 2020 following Donald Trump's presidential election victory, according to a New York Federal Reserve survey. The survey showed that 37.6% of households expect their financial situation to improve in the next year, while those expecting a decline dropped to 20.7%. Despite solid economic growth, inflation remains a concern, with expectations slightly rising. The outlook for government debt also improved, with expected growth in debt decreasing to 6.2%.
A New York Fed study reveals that during the pandemic, the net worth of white individuals grew by 30 percentage points more than that of Black individuals, largely due to gains in financial markets. Despite government support and a strong job market, wealth inequality persists, with a larger percentage of white households having investments in stocks and mutual funds. The study highlights the challenge of closing the wealth gap, as Black households have more wealth concentrated in pensions rather than market-linked assets. Black-owned businesses were disproportionately affected by the pandemic, and Treasury Deputy Secretary Walley Adeyemo suggests the need for policy interventions to address the significant wealth disparity between Black and white Americans.
Millennials in their 30s are facing increasing credit card debt, with outstanding balances reaching a record high of $1.13 trillion in the fourth quarter of 2023. The 90-day delinquency rate for credit cardholders has also risen to 6.36%, particularly affecting younger millennials and lower-income households. The end of the federal student loan pause and high interest rates on credit cards are contributing to financial strain. The Federal Reserve's cautious approach to interest rate adjustments may lead some card issuers to consider lowering rates in the near future.
The New York Federal Reserve reported a more than 50% surge in credit card delinquencies in 2023, with total consumer debt reaching $17.5 trillion. Delinquencies also rose in mortgages, auto loans, and other categories, signaling increased financial stress, particularly among younger and lower-income households. Household debt increased by $212 billion in the quarter, with credit card debt jumping 14.5% from the same period in 2022. Higher interest rates, driven by the Federal Reserve's tightening cycle, likely played a role in the delinquency rates. Despite some forgiveness of student loan debt by President Joe Biden, the total student loan debt remained largely unchanged, while mortgage debt increased by 2.8% in 2023.
A report from the New York Fed reveals that low-income borrowers are struggling to make payments on car loans and credit cards, with delinquencies surpassing prepandemic levels. Many missed out on the opportunity to refinance their mortgages during the pandemic, leading to higher monthly payments as current mortgage rates average 6.6%. Low-income areas also have lower levels of homeownership and higher rent burden, with 57% of households spending more than 30% of their income on rent.
The Empire State Manufacturing Index saw a significant drop to -43.7, with new orders plummeting to -49.4, indicating a sharp decline in business activity in New York State. The report also revealed decreases in shipments, unfilled orders, and employment, while input prices increased. Despite some optimism for future business conditions and capital spending, concerns about excessive optimism and recent negative economic indicators suggest the possibility of an impending recession.
The New York Federal Reserve's Empire State business conditions index, a measure of manufacturing activity, plummeted to its lowest level since May 2020, raising concerns about the U.S. manufacturing sector. The index for new orders and shipments dropped significantly, while employment and hours worked contracted. Despite a slight increase in optimism, the surprise decline has sparked doubts about the sector's performance. Economists caution that the month-to-month swings in regional Fed manufacturing surveys are mostly noise, and the market reacted with stocks opening lower and the 10-year Treasury yield rising to 4% in early morning trading.