Even though the consumer watchdog won in the US Supreme Court, its powers are still at risk.

WASHINGTON, May 17 (Reuters) - The U.S. Supreme Court's recent decision to protect the Consumer Financial Protection Bureau (CFPB), the country’s consumer finance watchdog, was welcomed by those who support strong federal regulation. However, this victory may be fleeting.

With its 6-3 conservative majority, the Supreme Court has increasingly acted in favor of reducing the power of federal agencies that regulate significant aspects of American business and life. On Thursday, the court upheld the CFPB's funding method—drawing money from the Federal Reserve instead of Congress-approved budgets—against a challenge by the payday loan industry. This ruling was a win for President Joe Biden’s administration and a disappointment for the agency's conservative critics.

 

Nonetheless, other decisions expected by the end of June, from cases the justices heard starting in October, could significantly limit federal agency powers in various areas, including finance and environmental conservation.