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2026-02-20 00:34:52
[Federal Reserve President Kashkari: Hassett's Remarks Attack the Fed's Independence Again] (1) Minneapolis Fed President Kashkari said on Thursday that White House chief economic advisor Hassett's demand to punish New York Fed tariff researchers is the latest move by the Trump administration to undermine the Fed's independence. (2) In an interview on Wednesday, Hassett accused the New York Fed of "shoddy" research—the report showed that the US borne about 90% of the cost of Trump's tariffs, a conclusion consistent with many other institutions. Kashkari bluntly stated that this was "yet another attempt to undermine the Fed's independence," following the government's previous criminal investigation into Powell and attempts to fire Governor Cook. (3) He emphasized that the Fed must make decisions based on data, and with the current interest rate at 3.5%-3.75%, inflation is still above the target, making a rate cut unlikely in the short term; Trump, on the other hand, is pressuring for a rate cut to 1%. Political pressure has complicated Warsh's nomination for chairman, with some Republican senators demanding the investigation into Powell be dropped first. Kashkari also pointed out that the independent research of the 12 regional Feds is the core of the Fed's operation.
