Humphrey
The independent agency litigation is more serious than people know.
How the Supreme Court Could Threaten Fed Independence
This refers to the Humphrey Executor test the Administration has wanted. The CEQ ruling may suggest the Court is inclined to accede. FDR lost, but Trump may yet win.
The argument here is that Congress cannot set up agencies by statute that can make policy and enforce regulations without the President having control. Up until this point, the President was limited to firing officers for cause. So, if Jay Powell had engaged in insider trading, he’d be vulnerable under current rules, but there is nothing stopping him from setting Federal Reserve policy with tremendous impact.
‘The Supreme Court is considering a dangerous emergency petition from President Donald Trump. If the justices adopt any part of his argument — that presidents should be able to override legislation establishing independent agencies like the Federal Reserve and remove their leaders without notice or cause — the court could immediately destabilize markets and permanently harm the US economy. Something as seemingly minor as a stay pending appeal, the relief the president seeks, could seriously damage Fed independence.’
The key question: do these “independent” agencies exercise executive power? Because if they do, they don’t enjoy the “for cause” protections.
‘This is literally writing the brief for the administration to challenge the current structure of the FTC as no longer fitting within the limits of Humphrey's Executor.’
Trump administration estimates 50,000 federal employees will lose civil service protections
Schedule F is now effective. Don’t say he didn’t tell you his intentions.
‘Approximately 50,000 career federal employees are on track to see their civil service protections removed, as the Trump administration pushes forward with converting workers in government policy roles to an “at-will” employment status.
‘A forthcoming proposed rule from Office of Personnel Management (OPM) will amend civil service regulations to allow career federal employees to be converted to a new “Schedule Policy/Career” classification. Employees moved into the new classification will be moved outside of merit system principles, making it possible for agencies to easily and quickly fire them.’
Trump Officials to Slash Most Employees at Consumer-Finance Watchdog
The leeway that Congress baked into the CFPB’s founding was vast, including having an independent funding scheme that made them invulnerable to Congressional whim. Of course, an agency that is funded out of Federal Reserve profits is still at risk to the market environment.
This is another example of so-called independent agencies in the crosshairs.
‘In the memo sent to staff Wednesday, the CFPB’s chief legal officer said the agency would focus on fraud with measurable “consumer damages as opposed to matters based on the Bureau’s perception that consumers made ‘wrong’ choices’.”
‘It said the CFPB would focus on areas that are clearly within its statutory authority and deprioritize areas including medical debt, student loans, digital payments and peer-to-peer platforms and lending.’
Manufacturers to Federal Agencies: Rebalance Regulations to Strengthen Manufacturing in the U.S.
National Association of Manufacturers suggests regulatory changes.
‘“Rebalancing regulations is a critical pillar of our comprehensive manufacturing strategy—which also includes making the 2017 tax reforms permanent, expediting permitting reform to unleash American energy, strengthening the manufacturing workforce and implementing commonsense trade policies,” said NAM President and CEO Jay Timmons. “Manufacturers are spending $350 billion each year just to comply with federal regulations—money that could be spent on expanding factories and production lines, hiring new workers or raising wages. The administration is already answering the calls of manufacturers across the country to reconsider and rebalance regulations that are holding manufacturers back. Using these recommendations as a guidepost, manufacturers look forward to continuing to work with the administration to fix rules that cost too much, trap projects in red tape, chill investment, do not make sense and harm the 13 million men and women who make things in the United States.”’