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Donald Trump is the latest move to strengthen the US president's grip on government agencies, and is to take stronger control of independent federal agencies, including key financial watchdogs.
The president signed an executive order late Tuesday, “reins in independent bodies,” and ordered draft regulations to be submitted for review, the White House said in a statement.
Trump will also set “performance standards” for agents who must “consult” with the White House on “priorities and strategic plans.”
As the president attempts to expand the power of the government's administrative division, the order seeks to shut down regulators formed in fiscal laws and disrupt public servants with budget cuts and layoffs.
According to a White House statement, the US Constitution “gives the right to all enforcement of the President, meaning that all administrative officers and employees will be subject to his supervision.”
“Now they no longer impose rules on Americans without surveillance or accountability,” the White House said.
Institutions eligible for orders include the Securities and Exchange Commission, the Wall Street top watch dog. Federal Trade Commission, anti-trust regulators. So does the Federal Communications Commission, which regulates television, internet services and radio in the United States.
The Federal Reserve's monetary policy function is exempt from the order, but the role of central bank supervision is being targeted, according to the White House.
Critics argue that order is illegal and that the core function of granting regulatory authority power through Congressional law is illegal.
“This is a very dangerous idea for the country's health, safety, the environment, the economy, and for our democracy,” said Robert Weissman, co-president of Public Citizens, a consumer advocacy group. Masu. “Congress created an independent body that was independent of the White House for good reason,” he added.
He added that the “illegal” order “sought to protect businesses from accountability and focus more power on Trump and his minions.”
Former President Joe Biden appointed progressive regulators to lead the agency, increasing regulation and enforcement.
The Fed and SEC declined to comment. The FTC and FCC did not respond immediately to requests for comment.
According to a White House statement, the Office of Management and Budget will “adjust” fund allocations to federal agencies “to ensure taxes are spent wisely.”
Trump and U.S. Attorney General Pam Bondy added that “separate agencies interpret laws rather than adopting conflicting interpretations.”
The statement appears to give the president a erosion of his freedom, while concentrating his power to establish law.
“If that's the case, it's the opening salvo,” said Ed Al Husseini, rate analyst at Colombia Threadneedle Investments. “We know what the administrative agencies want to do here: bring the agencies onto the track, which is inconsistent with the mission set up by Congress, and open rooms for litigation concerning this. There are a lot.”
Legal challenges to the order are widely expected. “The White House and conservatives not only hope for, but also hope, legal challenges in the executive order,” according to a memo from Ian Katz, a monetary policy analyst at research firm Capital Alpha Partners.
“They want a Supreme Court decision to further strengthen the executive authority over the institution,” Katz added.
Additional Reports by James Politi and Harriet Clarfelt
