Supreme Court expands Trump's firing power over independent agencies but shields the Fed

Two decisions, one day

The Supreme Court issued a pair of rulings on June 29 that redraw the boundaries of executive authority over independent agencies. In a 6-3 vote, the conservative majority overturned a 1935 precedent that had shielded agency heads from at-will dismissal, clearing the way for President Trump to remove Federal Trade Commission member Rebecca Slaughter. At the same time, a different 5-4 majority ruled that the president cannot fire a Federal Reserve governor without a valid reason, keeping Lisa Cook in her post.

The FTC case: a 90-year precedent falls

The case centered on Slaughter, a Democratic commissioner whom Trump dismissed shortly after returning to office in 2025. A lower court had blocked the firing, but the Supreme Court reversed that decision. Writing for six justices, the majority held that the president may remove "subordinates" who exercise executive functions, dismantling the 1935 barrier that required cause. Trump immediately celebrated on Truth Social, calling it a "great victory" and "one of the most important ever rendered concerning presidential powers."

This is a historic and unprecedented decision.

The three progressive justices dissented. Justice Sonia Sotomayor called the majority's reasoning "shaky" and warned it would lead to "chaos." Senate Democratic leader Chuck Schumer said the Court had given Trump "carte blanche to turn independent federal agencies into private clubs reserved for his golf partners and cronies."

The Fed case: a shield for monetary independence

In a separate ruling, the Court refused to let Trump fire Fed governor Lisa Cook "at will." Five justices stressed that while the president can remove a monetary official for a "valid reason," he cannot do so "for any reason, or no reason at all." The case was widely seen as a test of the legal barriers protecting the central bank's independence from political pressure.

Trump had accused Cook of mortgage fraud, alleging she declared two different primary residences in a short period. Cook called it a good-faith error and immediately challenged the dismissal in court. She is the only Black woman on the Fed board, appointed by Joe Biden in 2022, with a term running to January 2038.

The decision rendered today reaffirms a principle that has underpinned sound economic governance for generations: the Federal Reserve must make all its monetary policy decisions based on factual data and independent judgment, free from political interference.

Trump downplayed the loss as "strictly procedural" and promised "appropriate action" to ensure "someone who has committed infractions cannot make crucial decisions."

Other rulings

The Court also rejected a Republican bid to limit mail-in voting and declined to hear Trump's appeal of a civil judgment that found him liable for sexual assault and defamation against writer E. Jean Carroll. Those decisions, while overshadowed by the removal-power cases, added to a consequential day at the high court.