Which of the following powers does the President have over federal agencies?

The correct answer highlights one of the fundamental powers that the President holds concerning federal agencies, which is the ability to appoint or remove agency heads. This power is significant because it allows the President to influence the direction and policies of federal agencies that are responsible for implementing laws and regulations. By appointing individuals who align with their administrative priorities, the President can effectively steer agencies towards broader governmental goals and ensure that agency leadership reflects their policy agenda.

Additionally, this authority is rooted in the Constitution and various statutory frameworks, which empower the President to choose individuals for these critical positions. The ability to remove agency heads also provides a mechanism for ensuring accountability, as it allows the President to address any disconnect between the agency’s actions and the executive branch’s priorities.

The other choices do not accurately reflect the scope of presidential powers over federal agencies: merely reviewing agency decisions does not confer influence; lacking authority over budget processes contradicts the President's substantial role in proposing the federal budget; and the unilateral creation of regulations is not within the realm of executive power, as regulatory authority rests primarily with the agencies themselves under established laws.