The U.S. Supreme Court on Monday upheld President Donald Trump’s authority to remove the heads of most independent federal agencies while making a key exception for the Federal Reserve. The landmark ruling significantly expanded the president’s powers and is seen as one of the most important decisions on executive power in decades.A court has allowed Federal Reserve Governor Lisa Cook to stay on while she challenges Trump’s attempt to fire her over mortgage fraud allegations, which she denies. However, the ruling effectively gives the president broad authority to remove the leaders of most independent federal agencies, overturning decades of legal precedent that limited executive power.Supreme Court overturns decades of precedentIn a ruling supported by six conservative Supreme Court justices, nine justices overturned its 91-year-old ruling in the Humphrey Executive case that limited the president’s ability to remove members of independent agencies without cause.“We hold that this protection from deportation violates the Constitution’s separation of powers,” Chief Justice John Roberts wrote for the majority.The ruling comes in the case of former Federal Trade Commission member Rebecca Slaughter, who was fired by Trump despite federal law requiring such removals to be justified.The decision is expected to affect multiple independent agencies, including the National Labor Relations Board, the Merit Systems Protection Board and the Consumer Product Safety Commission, whose officials Trump has also removed, according to the Associated Press.Trump welcomed the ruling in a Truth Society post, writing: “I am deeply honored as a sitting President to win this historic, unprecedented ruling, one of the most consequential rulings ever made regarding presidential power.”Fed remains protectedIn another 5-4 ruling, the Supreme Court declined to immediately fire Federal Reserve Governor Lisa Cook as her legal challenge continues, the Associated Press reported.Chief Justice Roberts, joined by Justice Brett Kavanaugh and the court’s three liberal justices, said allowing Cook’s removal would effectively eliminate statutory protections for Fed governors.“The president will be allowed to remove members of the Federal Reserve at any time and for any reason without any prior notice or any subsequent judicial review. This would turn for-cause protection into at-will employment,” Roberts wrote.Cook, who was appointed to the Fed by former President Joe Biden, will remain on the board while the case continues to make its way through the courts.Justice Sonia Sotomayor issued a dissenting opinion, warning that the ruling could have far-reaching consequences for American democracy.“To be sure, the president has more power than ever before. Sotomayor said that authority was given to him by the six justices of this court, not the people or the Constitution. She added that the decision could lead to “subjugation, instability, and even oppression.”Confrontation between Trump and Fed intensifiesThe Cook case has attracted high attention because of Trump’s repeated criticism of the Federal Reserve and its interest rate policies.Trump has also threatened to oust former Fed Chairman Jerome Powell when his term ends in May, although Powell remains on the Fed’s Board of Governors and Kevin Warsh takes over as chairman.Critics believe Trump’s purpose in removing Cook is to gain greater influence over U.S. monetary policy. If successful, Trump could name a successor and gain a majority on the Fed’s Board of Governors.Cook has denied allegations that her dismissal was related to discrepancies in mortgage documents.“This is an attempt to remove me from office under fabricated excuses because I refuse to bow to political pressure and continue to set interest rates solely based on what is best for the American people. This is the most fundamental obligation of Fed governors,” she said in a statement.The case against Cook stems from allegations that she listed properties in Michigan and Georgia as “principal residences” on mortgage applications she submitted in 2021, before joining the Fed.U.S. Deputy Attorney General D John Sauer argued that the filings reflected at best “gross negligence” and justified Trump’s decision to oust her. Cook has denied any wrongdoing and has not been charged with any crime.
