Former FTC Chair Kovacic on Supreme Court Ruling Reshaping Agency Independence (with Katie Greifeld; Romain Bostick)

Introduces the Supreme Court ruling granting the president more power to fire top officials, impacting agencies like the FTC but shielding the Fed. Asks for reaction to Chief Justice Roberts' argument that the FTC must be controlled by the Chief Executive.

Katie Greifeld

Bill Kovacic

The Chief Justice took a strong position that there are only three branches of government, rejecting shared oversight between president and Congress. The president must have absolute power to fire FTC commissioners regardless of good cause.

Asks how this changes the behavior of the FTC going forward, given Kovacic's unique perspective as former chair.

Katie Greifeld

Bill Kovacic

In the short term, the current FTC chair has aligned with the president. For the longer term, the FTC will be much more directly responsive to the White House, leading to abandonment of the bipartisan multi-member model. There will be single-party representation as nothing compels the president to put minority commissioners on the board.

This will dramatically change governance and give the White House far more power over how the FTC and other major regulatory agencies behave.

Asks if there is hope for reinterpretation that agencies need independence to make decisions in the best interest of regulated industries without White House pressure.

Romain Bostick

Bill Kovacic

When an agency goes to court, its high card is that its decision is based on professional expertise. If decisions appear to be products of political expediency, courts will not respect them and will decide for themselves. Taking away autonomy denies the agency crucial strength in court and legitimacy with the public.

There are already plenty of accountability mechanisms built into the system. The autonomy provides civic society assurance that their interests are represented by true professionals.

Notes the Fed was shielded but asks if there is a pathway to go back to the Supreme Court to give the president more autonomy over hiring and firing at the Fed.

Romain Bostick

Bill Kovacic

The decision rested on procedural considerations in how Governor Cook was treated. The court couldn't stomach the idea of dismissing someone on the basis of 'my say-so.' The court was also concerned about sending markets into a tailspin by dismissing a member of a board so important to the monetary system and the entire economy.

Asks if companies actually fear these agencies, or did they prior to the decision.

Romain Bostick

Bill Kovacic

Companies don't fear the agencies. They know how to navigate the regulatory process—they know the identity and preferences of nominees, and all the pressure points in Washington (Congress, lobbying, appropriations, the White House). The power can be formidable, but there are legions of examples showing that power can be used to constrain the agencies.

Important to respect them, but not to fear that there's no way to hold them to account.

SignalTube