Financial markets remain tense amid a growing conflict between the Donald Trump administration and the Federal Reserve. White House economic advisor Kevin Hassett sharply criticized a report from the New York Fed branch regarding tariff costs, suggesting its authors be punished. Simultaneously, escalating tensions between Washington and Tehran have pushed oil prices above $70 per barrel, raising concerns about the durability of the global economic recovery.

Attack on Market Independence

The White House demands punishment for Fed economists over a report showing that American consumers pay for tariffs instead of foreign exporters.

Oil Above Psychological Barrier

Brent crude oil prices rose above $70 due to the risk of a direct military clash between the U.S. and Iran.

Fed Holds Off on Cuts

The central bank's meeting minutes indicate a hawkish stance and no agreement for quick monetary policy easing.

Relations between the White House and the Federal Reserve (Fed) have reached a critical point following the publication of a report indicating that 94% of the costs of imposed tariffs are borne by American firms and consumers. The Federal Reserve came under fire from Kevin Hassett, Director of the National Economic Council, who called the study a "disgrace" and called for disciplinary consequences for the economists. Minneapolis Fed President Neel Kashkari took these words as a direct attack on the institution's independence. The independence of central banks from political pressure is a cornerstone of the modern market economy, developed in the second half of the 20th century to combat hyperinflation. Commodity markets are experiencing strong fluctuations. Brent crude oil prices exceeded $70, reacting to reports of a possible U.S. military intervention in Iran. Meanwhile, copper fell by 0.3% in London, linked to the minutes from the Fed's January meeting. The document revealed that central bankers do not intend to rush with interest rate cuts until inflation approaches its target. Brent Crude Oil Prices: 2026-02-18T10:00: 67.50, 2026-02-18T22:00: 70.35, 2026-02-19T01:00: 70.23, 2026-02-19T10:00: 70.05 „The people associated with this article should probably be disciplined.” — Kevin Hassett In the agricultural sector, the U.S. Department of Agriculture predicts a change in crop structure. American farmers plan to plant 85 million acres of soybeans, a reaction to the recovery of exports to China, at the expense of corn crops. The situation is complicated by legal uncertainty – the U.S. Supreme Court is set to issue a key ruling soon on the legality of the tariffs imposed by President Trump, which could completely change the rules of the game in international trade. 94% — of tariff costs are covered by American importers U.S. Planting Forecasts 2026: Soybean plantings: 81.2 million acres → 85.0 million acres; Main recipient: Domestic market → China (export)

Mentioned People

  • Kevin Hassett — Director of the National Economic Council, who attacked the credibility of the New York Fed.
  • Neel Kashkari — President of the Federal Reserve Bank of Minneapolis, defending the central bank's independence.
  • Donald Trump — President of the United States, whose tariff policy has become the source of dispute with economists.