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America’s Supreme Court is inclined to clamp down on regulators

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A PAIR OF spirited Supreme Court hearings on January 17th confronted a question at the heart of American democracy: what is the balance of power among the three branches of the federal government? The justices seemed inclined to shift that balance towards their own chambers.

The cases under review both involve fishermen objecting to a regulation requiring them to pay hefty fees for monitors who keep an eye on them as they troll for herring. The rule was issued in 2020 by the National Marine Fisheries Service, an agency of the executive branch. It was then blessed by two circuit courts of appeal as consonant with the Magnuson-Stevens Fishery Conservation and Management Act, a law passed by Congress in 1976.

Yet in siding with the agency, those courts relied on a 40-year-old Supreme Court precedent, Chevron USA v Natural Resources Defence Council, that some current justices have soured on. According to Chevron, when a law of Congress is ambiguous, agencies have free rein to regulate in line with their understanding of the statute, as long as their interpretations are reasonable. This has come to be known as “Chevron deference”. With this week’s cases, Loper Bright Enterprises v Raimondo and Relentless v Department of Commerce, the apex of America’s judiciary looks ready to rescind this elbow-room for its co-equal branch. It seems judges may soon have more control over regulators handling everything from aviation to consumer safety.

Chevron’s most vocal critic on the court, Justice Neil Gorsuch, stayed true to his cause in the three and a half hours of arguments. Judges “abdicate” their “responsibility” as the final interpreters of the law, he said, when they allow agencies to run amok by making onerous rules like the one for herring fishermen. He suggested that another case, Skidmore v Swift (decided 40 years before Chevron), strikes a more suitable compromise. “Skidmore deference”, Justice Gorsuch said, involves “listen[ing] carefully to both sides and provid[ing] special weight” to what the agencies have to say in favour of their view, but never outsourcing legal questions to bureaucrats.

Justice Brett Kavanaugh spoke sceptically of Chevron, too, but said “deference” mischaracterises Skidmore. The 1944 case is about “respect” for regulators, he said, rather than giving them a long leash. For Justice Elena Kagan, one of only three jurists who resisted Chevron’s demise, Skidmore says “nothing”. The purported Chevron alternative, she quipped, amounts to: “if we think you’re right, we’ll tell you you’re right.”

Justice Kagan posed a number of hypothetical questions to Roman Martinez, one of the fisheries’ lawyers, involving the relative expertise of judges and agencies. Should judges decide whether a new product to promote healthy cholesterol is a “dietary supplement” or a “drug” subject to more stringent regulation? “I would rather have people at HHS [the Department of Health and Human Services] telling me,” she offered. If Congress were to legislate on artificial intelligence, she mused, should America entrust courts or experts to resolve ambiguities?

Justice Ketanji Brown Jackson chimed in with big-picture questions during the Relentless hearing. (She was recused from Loper Bright due to her participation in the case as a circuit-court judge.) Chevron opponents may think judges can keep their own preferences at bay, but “it’s actually not as easy as it seems” to pry apart law and policy, she said. Empowering judges to encroach on the business of agencies, she warned, might turn courts into “über-legislators”.

Elizabeth Prelogar, the solicitor-general, argued doggedly in favour of agency leeway through both hearings. In a nod to Chief Justice John Roberts, she warned that ditching Chevron would cause a “shock to the legal system”—reminiscent of the words he used in 2022 in lamenting his five conservative colleagues’ decision to overrule Roe v Wade, the ruling that in 1973 declared abortion a constitutional right. And in her final few minutes, with prompting from Justice Kagan and in light of an apparent lack of a majority on her side, she proposed a few ways the conservative court might tighten judicial oversight without tossing Chevron overboard. It would be a surprise if the conservative justices take the bait. 

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Economics

What would Robert F. Kennedy junior mean for American health?

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AS IN MOST marriages of convenience, Donald Trump and Robert F. Kennedy junior make unusual bedfellows. One enjoys junk food, hates exercise and loves oil. The other talks of clean food, getting America moving again and wants to eliminate oils of all sorts (from seed oil to Mr Trump’s beloved “liquid gold”). One has called the covid-19 vaccine a “miracle”, the other is a long-term vaccine sceptic. Yet on November 14th Mr Trump announced that Mr Kennedy was his pick for secretary of health and human services (HHS).

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Economics

What would Robert Kennedy junior mean for American health?

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AS IN MOST marriages of convenience, Donald Trump and Robert F. Kennedy junior make unusual bedfellows. One enjoys junk food, hates exercise and loves oil. The other talks of clean food, getting America moving again and wants to eliminate oils of all sorts (from seed oil to Mr Trump’s beloved “liquid gold”). One has called the covid-19 vaccine a “miracle”, the other is a long-term vaccine sceptic. Yet on November 14th Mr Trump announced that Mr Kennedy was his pick for secretary of health and human services (HHS).

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Economics

UK economy ekes out 0.1% growth, below expectations

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Bank of England in the City of London on 6th November 2024 in London, United Kingdom. The City of London is a city, ceremonial county and local government district that contains the primary central business district CBD of London. The City of London is widely referred to simply as the City is also colloquially known as the Square Mile. (photo by Mike Kemp/In Pictures via Getty Images)

Mike Kemp | In Pictures | Getty Images

The U.K. economy expanded by 0.1% in the third quarter of the year, the Office for National Statistics said Friday.

That was below the expectations of economists polled by Reuters who forecast 0.2% gross domestic product growth on the previous three months of the year.

It comes after inflation in the U.K. fell sharply to 1.7% in September, dipping below the Bank of England’s 2% target for the first time since April 2021. The fall in inflation helped pave the way for the central bank to cut rates by 25 basis points on Nov. 7, bringing its key rate to 4.75%.

The Bank of England said last week it expects the Labour Government’s tax-raising budget to boost GDP by 0.75 percentage points in a year’s time. Policymakers also noted that the government’s fiscal plan had led to an increase in their inflation forecasts.

The outcome of the recent U.S. election has fostered much uncertainty about the global economic impact of another term from President-elect Donald Trump. While Trump’s proposed tariffs are expected to be widely inflationary and hit the European economy hard, some analysts have said such measures could provide opportunities for the British economy.

Bank of England Governor Andrew Bailey gave little away last week on the bank’s views of Trump’s tariff agenda, but he did reference risks around global fragmentation.

“Let’s wait and see where things get to. I’m not going to prejudge what might happen, what might not happen,” he told reporters during a press briefing.

This is a breaking news story. Please refresh for updates.

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