President Donald Trump's top economic advisor, Kevin Hassett, sharply criticized researchers from the New York branch of the Federal Reserve. The dispute centers on a report indicating that the costs of U.S. tariffs are borne by domestic companies and consumers, contradicting the administration's narrative. Simultaneously, U.S. central bankers are analyzing the impact of artificial intelligence on interest rates, while Europe debates the costs of a digital euro and the future of a joint fighter jet.

Tariff Conflict in the US

The White House demands punishing economists from the Fed for a report showing that American consumers pay for Donald Trump's tariff policy.

AI Impact on Interest Rates

Federal Reserve representatives warn that the technological boom may prevent interest rate cuts due to increased productivity.

Costs of the Digital Euro

The ECB estimates that the new currency will cost commercial banks up to 6 billion euros, though it aims to protect the European payment system.

Fighter Jet Project Crisis

A dispute between Airbus and Dassault could lead to the collapse of the FCAS project worth 100 billion euros.

The atmosphere in relations between the White House and the Federal Reserve has significantly deteriorated following the publication of a report by the New York Fed. The Federal Reserve presented data showing that the burden of import tariffs imposed by Donald Trump falls mainly on American businesses and middle links in the supply chain, not on foreign producers. National Economic Council Director Kevin Hassett described the document as "embarrassing" and called for disciplinary consequences against its authors, accusing them of political bias. At the same time, Fed representatives, including Michael Barr and Mary Daly, are focusing on the impact of artificial intelligence on the economy. There are concerns that the productivity increase resulting from AI integration could lead to a rise in the neutral rate, forcing the bank to maintain higher interest rates for longer. This stance opposes the administration's expectations for rapid monetary policy easing. Relations between U.S. presidents and the Federal Reserve have been tense in the past, such as in the 1970s when Richard Nixon put strong pressure on Arthur Burns to lower rates before elections, contributing to later stagflation. On the European continent, the European Central Bank published its own analyses. They indicate that the increase in Chinese exports to Europe is not a direct result of U.S. tariffs but stems from deeper structural imbalances in Asian economies. Meanwhile, Piero Cipollone of the ECB estimated that implementing a digital euro will cost European banks between 4 and 6 billion euros over four years. In the shadow of these events, a crisis continues in the project to build the European future combat air system (FCAS), where Airbus proposed splitting the program into two separate designs due to disputes between France, Germany, and Spain. „What they did was present conclusions that created many extremely biased news stories, based on analysis that wouldn't be accepted in the first semester of studies.” — Kevin Hassett 6 mld € — will be the maximum cost of the digital euro for banks Views on Tariff Burden: Who pays for tariffs?: Foreign producers (White House thesis) → American firms and consumers (Fed report); Nature of analysis: Expert and objective → Politically motivated (according to administration)

Mentioned People

  • Kevin Hassett — Director of the National Economic Council of the USA, critic of the Fed report.
  • Piero Cipollone — Member of the Executive Board of the European Central Bank responsible for the digital euro.
  • Michael Barr — Vice Chair for Supervision of the Fed, analyzing the impact of AI on the economy.