The Supreme Court said presidents can generally remove independent-agency leaders without cause, while allowing Federal Reserve Governor Lisa Cook to remain in office during her challenge to President Donald Trump.
The Supreme Court expanded presidential authority to remove leaders of most independent federal agencies, strengthening the legal basis for broader White House control over regulators and potentially reshaping oversight across markets, including crypto-related enforcement and rulemaking. Chief Justice John Roberts wrote that most statutory protections against dismissal without cause violate the Constitution’s separation of powers, overturning the 91-year-old Humphrey’s Executor precedent in a case involving former Federal Trade Commission member Rebecca Slaughter. The court said the reasoning is expected to affect agencies including the National Labor Relations Board, the Merit Systems Protection Board and the Consumer Product Safety Commission. In a separate 5-4 action, however, the justices allowed Federal Reserve Governor Lisa Cook to remain in her post while she contests President Donald Trump’s attempt to fire her over mortgage fraud allegations she denies, preserving the Fed’s independence for now and limiting the ruling’s immediate reach to the U.S. central bank.