The US Supreme Court dramatically expanded presidential power over independent agencies on Monday, upholding President Donald Trump's firing of FTC Commissioner Rebecca Slaughter while blocking his attempt to remove Federal Reserve Governor Lisa Cook. The rulings overturn a 91-year-old precedent, Humphrey's Executor, but carve out a unique exception for the central bank.
In a 6-3 vote, the court ruled that Trump lawfully fired Slaughter, ending the long-standing protection that independent agency commissioners could only be removed for cause. Chief Justice John Roberts wrote that 'subordinates who exercise the President's power are subject to removal by him' Source: NPR. However, in a separate 5-4 decision, the court blocked Trump's firing of Cook, citing the Fed's unique structure and long tradition of independence. Roberts noted that 'the Federal Reserve's Governors do not serve at the president's pleasure' Source: SCMP.
Trump celebrated the Slaughter ruling as a 'BIG WIN' and a 'Historic and Unprecedented Ruling' Source: AP News. Critics warn the decision removes a key check on executive power, with Justice Sotomayor dissenting that it 'gives the President a power unknown even to the English Crown' Source: The Guardian. Cook, who remains on the Fed board, said in a statement that the ruling 'affirmed the Federal Reserve's independence' Source: Fox Business.
“Chief Justice John Roberts wrote for the court: 'We hold that such protection from removal is contrary to the separation of powers enshrined in the Constitution.'”
“Roberts wrote: 'Like the directors of its three predecessors, however, the Federal Reserve's Governors do not serve at the president's pleasure – they instead serve staggered 14 year terms, and may be removed only for cause.'”
“Roberts wrote: 'Subordinates who exercise the President's power are subject to removal by him. Then, and only then, can they remain accountable to the President, and the President to the people.'”
“Cook said the ruling reaffirmed the Federal Reserve's independence, calling it 'a principle that has underpinned sound economic stewardship for generations.'”
“Trump wrote on Truth Social: 'It is such an Honor to be the sitting President who won this Historic and Unprecedented Ruling, one of the most important ever given with respect to Presidential Powers.'”
“Justice Sotomayor wrote in dissent: 'The Court gives the President a power unknown even to the English Crown against which the Founders revolted.'”
“Slaughter said on CNBC: 'It takes a massive amount of power away from Congress, and to the president to shape economic decision-making in a way that will reward the rich and powerful.'”