Supreme Court Case Could Limit CFPB's Power and Independence
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Democrats created the CFPB and funded it through the Federal Reserve to shield it from politics. Its funding method is now facing a major test in the Supreme Court.
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The case could curb the CFPB's power, throw its rules into question, and affect other agencies like the Fed that aren't funded by Congress.
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Democrats say the CFPB's independence was critical to its formation, while Republicans argue the funding scheme lacks accountability.
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The court could kick the issue back to Congress to change how the CFPB is funded, opening the door for broader reforms.
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A ruling against the CFPB risks undermining other regulators like the Fed and FDIC, which could create economic chaos.