US Supreme Court expands presidential power but shields Federal Reserve independence

The US Supreme Court issued a landmark ruling on Monday that dramatically expands presidential authority to fire heads of independent federal agencies, while carving out a critical exception for the Federal Reserve. The 6-3 decision in Trump v. Slaughter overturned a 91-year-old precedent that had protected commissioners of agencies like the Federal Trade Commission (FTC) from removal without cause. Source: listindiario Writing for the majority, Chief Justice John Roberts stated that “subordinates who exercise the president’s power are subject to his removal.” Source: mileniomx The ruling effectively gives President Donald Trump direct control over at least two dozen agencies, including the Securities and Exchange Commission and the National Labor Relations Board.

The Fed exception

In a separate 5-4 decision, the court blocked Trump’s attempt to fire Federal Reserve Governor Lisa Cook, who was accused of mortgage fraud. Source: lavanguardia Roberts wrote that allowing her removal would “transform the protection of the Federal Reserve against arbitrary removals into a regime of at-will employment.” Source: infobae Cook praised the decision as affirming the Fed’s independence. Source: diariolibree

Other setbacks

On the same day, the court also rejected Trump’s bid to overturn a $5 million sexual abuse verdict in favor of writer E. Jean Carroll. Source: lavanguardia Additionally, it ruled that Mississippi can count mail-in ballots received up to five days after Election Day. Source: clarin

Reactions

Trump celebrated the Slaughter ruling as a “historic and unprecedented” victory. Source: listindiario Justice Sonia Sotomayor dissented, warning the decision could lead to “submission, instability, and even oppression.” Source: listindiario