Supreme Courts Says Unconstitutional Consumer Bureau is Constitutional

The Constitution requires that federal spending be approved by Congress. The Consumer Finance Protection Bureau is housed within the Federal Reserve and financed with money newly created by the Federal Reserve, bypassing the constitutional requirement.

The agency gets funding from the Federal Reserve, rather than Congress, and has a single director who cannot be removed except for cause. Critics have argued that the set-up means the CFPB isn’t accountable to the president or to Congress.

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