Supreme Court broadens presidential firing power while Lisa Cook stays at Fed for now
The justices backed Trump’s FTC firing and widened White House control over most independent agencies, while in a separate 5-4 action they left Federal Reserve Governor Lisa Cook in office during her challenge.
The U.S. Supreme Court ruled 6-3 that presidents generally may remove leaders of most independent federal agencies without cause, backing Trump’s firing of former Federal Trade Commission member Rebecca Slaughter and overturning the 1935 Humphrey’s Executor precedent. In a separate 5-4 action, the court refused to let President Donald Trump immediately remove Federal Reserve Governor Lisa Cook, leaving her on the Board of Governors while her lawsuit proceeds. Chief Justice John Roberts wrote that treating the Fed’s for-cause protection as at-will employment would threaten the central bank’s independence. The ruling broadens White House control over regulators and could increase policy and enforcement volatility, including in sectors such as crypto, while the Fed’s distinct status remains unresolved on the merits.
- Humphrey’s Executor: A 1935 Supreme Court precedent that had limited a president’s ability to remove certain independent-agency officials without cause.
- Federal Reserve Act: U.S. law governing the central bank, including the rule that a president may remove a Federal Reserve governor only "for cause."
- central bank independence: The principle that monetary policymakers should be insulated from direct political pressure, especially in decisions on interest rates and financial stability.