Supreme Court expands Trump's power to fire agency heads but protects Fed independence
The U.S. Supreme Court on Monday handed President Donald Trump broad authority to fire leaders of federal regulatory agencies at will, overturning a 90-year-old precedent, but it refused to let him dismiss a Federal Reserve governor, keeping the central bank's independence intact.
A sweeping expansion of removal power
The Supreme Court ruled 6-3 that the president may fire members of the Federal Trade Commission without cause, discarding the 1935 precedent that had shielded many independent agencies from political interference. Chief Justice John Roberts wrote for the conservative majority that for-cause removal protections violate the separation of powers embedded in the U.S. Constitution. The decision affects the National Labor Relations Board, the Consumer Product Safety Commission, and other bodies whose members previously could be removed only for neglect or malfeasance. Trump had already dismissed Democratic commissioners from several of these agencies, and their pending lawsuits now appear likely to fail.
The one thing that does appear to be clear going forward is that chaos will follow.
Fed carved out, but stands alone
In a separate 5-4 ruling, the court blocked Trump from firing Federal Reserve governor Lisa Cook, the first Black woman to serve on the central bank's board. The justices held that the Fed's unique structure and role in monetary policy distinguish it from other agencies. Trump had sought to remove Cook over unproven allegations of mortgage fraud and because she resisted his calls for lower interest rates. The decision leaves the Fed as an isolated holdout, legally insulated from presidential removal power while other agencies lose that shield.
Fed independence lives on but the foundation is much weaker than it has been over the past 90 years. The Fed is now going to be forced to stand alone.
- FTC removal
- 6 justices
- Fed independence
- 5 justices
Reactions and consequences
Trump celebrated the outcome on Truth Social, calling it a "historic and unprecedented ruling." Progressive advocacy group Alliance for Justice warned that the decision deepens authoritarian tendencies, with its president Rachel Rossi saying, "Our authoritarian president was just handed the keys to be even more authoritarian." Legal experts noted that agencies overseeing antitrust, consumer safety, and labour relations will now see their leadership change with every presidential transition. "You have a regulatory pendulum that goes back and forth," said Graham Steele, a former Biden-era Treasury official.
Broader legal landscape
The rulings were part of a larger term in which the court granted Trump extensive immigration, tariff, and election-related victories, though it also rejected his use of emergency trade powers under the International Emergency Economic Powers Act and his attempt to alter mail-in ballot rules. By singling out the Federal Reserve for continued independence, the court may have intensified the pressure on the central bank to justify its special status in future political battles.
