1. Prez interpretation of legislative intent Last time: affecting economic policy – the politics of blame –fiscal policy, monetary policy and the prez’s advisory role Today: Interpreting legislative intent

2. Managing the economy Fiscal policy: taxes, spending, borrowing (the budget) –presidents have an informational role per 1921 Budget Act; also try to use central clearance to vet bureaucratic testimony to Congress –asymmetric veto threats –presidents have variously been delegated discretionary authorities on some limited categories of spending –appointment powers

3. Monetary and banking policies the Federal Reserve system –Privately owned, but publicly controlled; national banks were required to invest in the Fed when it was established –the Board of Governors of the Fed administers the system; 7 members nominated by the prez for staggered 14-year terms –FOMC: Board members plus 5 bank presidents –Fed sets reserve ratios (subject to statute); sets the discount rate; engages in open-market operations (buying and selling gov’t securities; with policies set by the FOMC)

4. Prez and advisory economic policy Employment Act of 1946: –created Jt. Economic Committee in Congress and the Council of Economic Advisors –Council of Economic Advisors helps prez prepare annual Economic Report, required by 1946 Act; and gives prez economic advice –Jt. Committee receives the annual report and does studies/holds hearings; no legislative jurisdiction These are about information transmission and position-taking

5. Prez tools for shaping interpretation of legislative intent Signing statements: rhetorical device to interpret legislative intent –why should anyone treat as credible statements made by the prez at this stage? Executive orders: quasi-legislative statements about leg. intent or decree-like, policy-making devices –under what conditions should bureaucrat action be shaped by E.O.s?

6. Deering & Maltzman executive orders have impact of law when not contradicted by statutory language Prez can use e.o. to extend the scope of a legislative delegation, but not so easily to restrict that scope Prez. can use implied powers to issue quasi-legislative proclamations, –such e.o.’s are hard to defend against legislative opposition –but if Cong. is internally divided, prez can take initiative When Cong. majority and prez agree on goals, Cong. delegates broader discretion and leaves room for prez. interpretation of the details When Cong. maj. and prez disagree on goals, Cong. should be more specific in legislation and/or impose greater procedural requirements to limit room for prez interpretation