Hassett says today's GDP report is 'somewhat disappointing'
TL;DR
Kevin Hassett calls the latest GDP report 'somewhat disappointing' but defends Trump's trade policies, claiming they benefit consumers through wage growth and lower inflation, despite criticism from independent analysts.
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Hassett says today's GDP report is 'somewhat disappointing'
Hassett Criticizes Recent GDP Report, Defends Trump’s Trade Policies
Kevin Hassett, Director of the National Economic Council, described the latest U.S. GDP report as “somewhat disappointing” but maintained that President Donald Trump’s trade policies have delivered net benefits to consumers and businesses according to the report. His remarks come amid ongoing debate over the economic impact of Trump’s tariffs, which Hassett has consistently defended despite criticism from independent analysts.
Hassett recently criticized a New York Fed study that found 90% of the costs from U.S. tariffs were borne domestically, calling the research “an embarrassment” and “the worst paper I’ve ever seen in the history of the Federal Reserve system” according to CNBC. He argued the study failed to account for broader economic effects, such as wage growth and the shift of production back to the U.S., which he claims have improved living standards. “Real wages were up $1,400 on average last year,” Hassett stated, asserting that consumers were “made better off by the tariffs”.
The GDP report, released on February 18, 2026, showed mixed economic signals. While inflation has moderated—core CPI rose 2.5% annually in January, its lowest since March 2021— growth remains constrained by global trade tensions and shifting supply chains. Hassett emphasized that import prices had declined in the first half of 2025, contributing to lower inflation, though he acknowledged the need for continued policy adjustments.
The New York Fed and Federal Reserve Board declined to comment on Hassett’s criticisms, with Minneapolis Fed President Neel Kashkari cautioning against political interference in central bank research. Kashkari noted that Fed researchers operate independently to inform policy decisions, a principle Hassett has repeatedly challenged.
As the Trump administration continues to advocate for protectionist trade measures, the divide between White House economic advisors and independent analysts highlights broader tensions over economic priorities. Investors are now monitoring upcoming data on wage growth, trade balances, and consumer spending to gauge the long-term trajectory of the recovery.
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