Supreme Court Blocks Trump’s Attempt to Dismiss Fed Governor While Expanding Authority Over Other Independent Agencies
The Court ruled 5-4 that President Trump cannot fire Federal Reserve board member Lisa Cook, but a 6-3 decision overturned a precedent limiting his power to remove officials from agencies such as the FTC.
The U.S. Supreme Court issued two contrasting decisions on Monday. In a 5-4 vote, the Court rejected President Donald Trump’s effort to remove Federal Reserve board member Lisa Cook, finding that the president must provide notice and an opportunity for her to respond before a termination for cause. Chief Justice John Roberts wrote that allowing at-will dismissal would conflict with the statute that protects the Fed’s independence and the nation’s tradition of insulating central banking from political pressure.
Cook, who denied allegations of mortgage fraud cited by the administration, welcomed the ruling, saying it thwarted an attempt to remove her on a “manufactured pretext.” The decision leaves her in place while the underlying factual dispute remains unresolved.
In a separate case, the Court voted 6-3 to overturn the 1935 Humphrey’s Executor precedent, permitting the president to fire members of independent agencies without cause. The ruling directly affected Federal Trade Commission commissioner Rebecca Kelly Slaughter, whom Trump dismissed in March, and it extends to other agencies that Congress designed to operate free from direct political control. Roberts emphasized that “subordinates who exercise the president’s power are subject to removal by him,” reinforcing executive accountability.
The two rulings illustrate the Court’s nuanced approach: it upheld protections for the Federal Reserve’s unique structure while broadening presidential authority over other independent bodies. Legal analysts note that the FTC decision could influence future challenges involving agencies such as the Consumer Product Safety Commission and the Equal Employment Opportunity Commission.
The administration has not commented on the Cook decision, and it remains possible that Trump could pursue further legal avenues. Meanwhile, the expanded removal authority may affect the composition and policy direction of several regulatory agencies.
