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President's power to can independent agency heads faces test

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AP Washington
Last Updated : Mar 01 2020 | 10:50 PM IST

The Supreme Court is about to tell President Donald Trump whether he has more power to use a favourite phrase: You're fired.

A case being argued at the high court on Tuesday could threaten the structure of agencies that form an enormous swath of the federal government.

It has to do with whether a president can fire the heads of independent agencies for any reason.

The case the justices are hearing involves the Consumer Financial Protection Bureau, the agency Congress created in response to the 2008 financial crisis.

It was the brainchild of Massachusetts senator and Democratic presidential candidate Elizabeth Warren.

Experts say a decision could ultimately affect not only the CFPB but also how easily the president can fire a host of other independent agency heads, including leaders of the Federal Reserve, Federal Deposit Insurance Corporation, Federal Trade Commission, Federal Communications Commission, Securities and Exchange Commission and Social Security Administration.

The president can and has ousted executive branch officials, including FBI Director James Comey, national security adviser John Bolton and Secretary of State Rex Tillerson. But the heads of independent agencies are different because laws insulate them from being fired without reason.

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Experts on both sides of the issue agree the impact of the Supreme Court case could be vast.

This case could potentially put the legality of many government agencies in doubt," said Georgetown University law professor Adam Levitin, who believes Congress can limit the president's ability to fire the CFPB director.

Oliver Dunford, an attorney with the Pacific Legal Foundation who believes the CFPB's structure is unconstitutional, agreed the case has long-term implications.

Conservatives have long argued that independent agencies created by Congress such as the CFPB have gotten out of control, violating the Constitution's separation of powers principles by limiting the power of the president.

But defenders of the CFPB's structure say such agencies were set up to insulate them from political pressure and from strong-arming by the president.

Boston College law professor Patricia McCoy, a former CFPB official, says the structure of independent agencies is a very longstanding tradition that has served the economy, the American people, well.

Under the Dodd-Frank Act, the CFPB director is appointed by the president and confirmed by the Senate and serves a five-year term.

The president can only remove a director for inefficiency, neglect of duty or malfeasance in office."

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First Published: Mar 01 2020 | 10:50 PM IST

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