U.S. Supreme Court Lets Donald Trump Dismiss Independent Agency Officials, Limits Federal Reserve Power

The U.S. Supreme Court on Monday gave President Donald Trump the power to dismiss at will officials of independent agencies, overturning a 90-year-old rule while drawing a line at the Federal Reserve, according to France 24.

“Washington, DC – The United States Supreme Court has completed its nine-month term, handing US President Donald Trump a handful of losses on marquee issues, including scuttling his reciprocal tariffs policy and effort to end birthright citizenship”

Al Jazeera

In the case involving Federal Trade Commission commissioner Rebecca Slaughter, the court authorized Trump to dismiss freely officials of independent agencies, and it overturned jurisprudence dating back more than 90 years (1935), France 24 said.

Al Jazeera

In a separate case involving Federal Reserve governor Lisa Cook, the court ruled differently, with five justices noting Trump could not fire her at will without giving her a chance to defend herself, France 24 reported.

The decision also came as Trump hailed the Slaughter ruling as a historic and unprecedented victory in a post on Truth Social, while Cook immediately brought the matter before the courts to remain in place, France 24 said.

While the court expanded Trump’s removal authority for independent agencies, it protected the Federal Reserve by allowing Lisa Cook to remain in office while she fights the bid to fire her over mortgage-fraud allegations she has denied, Independent en Español reported.

Independent en Español said the justices allowed Cook to remain in office while she challenges the Republican president's bid to fire her, but held that presidents have the freedom to dismiss agency heads at will despite federal laws requiring a cause for such removals.

BBC

The same report said the court overruled its own unanimous Humphrey's Executor decision, which had limited when presidents can dismiss members of agency boards, and it quoted Chief Justice John Roberts writing, "We hold that that protection against removal is contrary to the separation of powers enshrined in the Constitution."

Independent en Español also reported that Roberts included a caveat that nothing prevents Trump "from trying again" to dismiss Cook as long as he gives advance notice and provides her with an opportunity to defend herself.

The Supreme Court’s rulings left Trump with broad new control over independent agencies, but the Federal Reserve remained shielded, and France 24 described the Cook case as a test of the legal bulwarks keeping executive power away from monetary policy.

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Boursorama

France 24 reported that Trump publicly pressed the Federal Reserve and tried to push out former Fed chair Jerome Powell before the end of his term, while he also accused Cook of dishonesty in requests for personal mortgage loans.

In her statement, Cook said the decision reaffirms that the Federal Reserve must base all its monetary policy decisions on factual data and independent judgment, shielded from political interference, and she said it was an attempt to remove her under a fallacious pretext because she refused to yield to political pressure.

Independent en Español added that Trump expressed approval in a post on Truth Social for the Slaughter ruling, and it said the Trump administration is appealing a lower court ruling in its favor as the Cook challenge proceeds.