Supreme Court Hands Trump a Major Power Win, but Draws a Line at the Fed

The Supreme Court handed President Trump sweeping new authority over independent federal agencies on Monday, while drawing a hard line at one institution: the Federal Reserve.

What You Should Know

In Trump v. Slaughter, a 6-3 majority ruled the president can fire Federal Trade Commission member Rebecca Slaughter without cause, according to PBS NewsHour. The decision overturns Humphrey’s Executor, a 1935 ruling that had shielded roughly two dozen independent agencies, including the Nuclear Regulatory Commission and the FCC, from at-will presidential removal. In a separate 5-4 ruling, Trump v. Cook, the same court blocked Trump’s attempt to immediately remove Federal Reserve Governor Lisa Cook over disputed mortgage fraud allegations, with Chief Justice John Roberts joined by Justice Brett Kavanaugh and the court’s three liberal justices.

The Pressure Point

Roberts wrote that the Fed’s “unique historical status and role” justified different treatment, according to CNN. The logic of the Slaughter ruling, however, is expected to extend to agencies like the National Labor Relations Board and the Merit Systems Protection Board, where Trump has also moved to remove board members.

The Receipts

Trump celebrated the Slaughter outcome on Truth Social, calling it “one of the most important” rulings on presidential power and writing that “90 years of precedent” had been overruled, per CNN’s live coverage. Cook, a Biden appointee, said in a statement reported by ABC News that the case was “an attempt to remove me on a manufactured pretext.” Justice Sonia Sotomayor dissented sharply in the Slaughter case, according to Newsweek.

What Happens Next

Cook stays on the Fed board for now while her underlying lawsuit proceeds in lower courts, and Trump has said he will “take appropriate action immediately.” The broader fight over agency independence is likely to keep returning to the Supreme Court as more removals are challenged.

References: PBS NewsHour | CNN | ABC News