Trump Limits Federal Agency Powers... "Must Report in Advance to Regulate"

Executive Order Signed
White House Consultation Required for New Regulations
Fed's Monetary Policy Exempted

U.S. President Donald Trump signed an executive order to reduce the regulatory authority of various federal agencies. Going forward, federal agencies will be required to report and consult with the White House before establishing new regulations, raising concerns about the independence of agency operations.

On the 18th (local time), President Trump signed an executive order limiting the powers of federal agencies such as the U.S. Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC). The executive order mandates that federal agencies, which have so far independently handled regulatory duties in their respective fields, must submit drafts to the White House and consult with it before creating new regulations.

President Trump stated, "Previous administrations allowed so-called independent regulatory agencies to operate with minimal presidential oversight," adding, "As a result, these agencies exercise significant administrative authority without sufficient accountability to the U.S. president and the public." This is interpreted as the White House intending to exert influence even over independent bodies.

In the case of the SEC, measures have been taken to ensure maximum independence from political influence, such as prohibiting the appointment of more than three commissioners from the same political party among the five members.

The Federal Reserve (Fed) and the Federal Open Market Committee (FOMC), which have shown differences with President Trump regarding monetary policy direction, were exempted from this executive order.

However, for financial supervision and regulatory duties excluding monetary policy, the Fed is required to report to and consult with the White House in advance.