Reading Room Document

Legal authority for consumer credit controls

The document discusses the legal authority for the reinstatement of Regulation W, which deals with consumer credit controls under the Federal Reserve System. It concludes that the Federal Reserve System has the legal authority to impose consumer credit controls under Executive Order No. 8843 without the need for a new Executive order, due to the national emergency declared by President Truman in 1950. The document also presents the legislative history and congressional actions related to the imposition of consumer credit controls, and it outlines the choices for implementation, including relying on the existing Executive Order or issuing a new one under Section 5(b) of the Act. The questions presented for review include the legal existence of a national emergency, the choices for implementation, and the potential adverse effects of reimposing consumer credit controls without explicit congressional authorization.

November 10, 1969