Supreme Court Expands Presidential Power to Fire Agency Chiefs

The U.S. Supreme Court ruled that presidents can fire members of independent agencies like the Federal Trade Commission (FTC) without cause, overturning a 91-year-old precedent in a 6-3 decision. The court found that President Trump's March 2025 firing of FTC Commissioner Rebecca Kelly Slaughter was lawful. Since its creation in 1914, Congress has held that FTC commissioners can only be fired for 'inefficiency, neglect of duty or malfeasance in office.'

In the ruling, Chief Justice John Roberts wrote, 'The president has the power to remove purely executive officers for any reason,' overruling a 1935 precedent. The decision expands presidential authority and limits congressional oversight of independent agencies.

The court treated the Federal Reserve differently in a separate case involving Trump's attempt to fire Governor Lisa Cook. In a 5-4 ruling, the justices blocked Trump's effort, citing Cook's right to procedural protections. Roberts noted that the Fed is 'uniquely structured' and protected from political interference.

The decision has significant implications for presidential power and the independence of federal agencies. Lisa Cook, appointed by President Joe Biden in 2022, is the first Black woman to serve on the Fed's board. Her term was scheduled to expire in 2038. Trump claimed he had evidence that Cook committed mortgage fraud, which she denied and sued over.

A rare filing from prominent economists and former government officials highlighted the high stakes in the Supreme Court's decision allowing Lisa Cook to remain in her role while her legal challenge to President Donald Trump's firing moves forward. In a 5-4 ruling, the justices concluded that the Federal Reserve occupies a unique constitutional position among independent federal agencies.

The case drew an extraordinary amicus brief from leading figures in American economic policy, who urged the court to preserve the Federal Reserve's independence and warned that expanding presidential control over the central bank could undermine confidence in U.S. monetary policy. The group included every living former chair of the Federal Trade Commission (FTC), Alan Greenspan, Ben Bernanke, and Janet Yellen, as well as six former Treasury secretaries who served presidents of both parties.

Trump voiced his approval on Truth Social, calling it a historic ruling that greatly increases presidential power. Justice Sonia Sotomayor dissented, warning the ruling could lead to 'submission, instability, and even oppression.' She argued that the president's newfound power was given by six justices, not the people or the Constitution.

Financial experts noted that the Supreme Court rulings may have far-reaching effects for consumers. The decision preserving Federal Reserve independence was seen as a win for consumers and the U.S. economy. However, the ruling allowing presidents to fire members of other federal commissions like the FTC could lead to more volatile policymaking and regulatory whiplash for consumers and businesses.

The Supreme Court's ruling isn't necessarily the last word on Cook's removal. The majority said that Cook is entitled to some explanation of the evidence against her, and an ability to respond to the allegations. 'Only after Cook has had the opportunity to respond to the charges made against her may a final decision be made,' Roberts wrote.