Economic Advisers Chairman Kevin Hassett criticized the Federal Reserve, arguing it has failed to remain independent and has misjudged the impact of tariffs on inflation.

“This Fed hasn’t really been independent… The Fed, all the way since January has been saying that inflation is going to skyrocket because of tariffs and that they had to have high interest rates,” Hassett said.

He pointed to data from the latest Council of Economic Advisers report, which shows that import prices have actually gone down, contradicting the Fed’s warnings.

Hassett’s remarks add to ongoing debates about the central bank’s approach to interest rates, particularly as businesses and consumers continue to feel the effects of borrowing costs while inflation trends appear to be stabilizing.