Key Points
- The Supreme Court appears ready to grant Trump more power to fire officials at most regulatory agencies.
- However, the conservative justices have signaled that the Federal Reserve is a special exception.
- The court will hear a major case next month on Trump’s attempt to fire Fed Governor Lisa Cook.
- The Fed’s independence from political pressure is widely seen as crucial for the U.S. economy.
The Supreme Court’s conservative majority appears ready to grant President Donald Trump greater authority to fire officials across many federal agencies. However, the justices are signaling that the Federal Reserve is a special case and should remain independent from direct presidential control.
The court is set to hear arguments next month in a major case over Trump’s attempt to fire Federal Reserve Governor Lisa Cook. This move is part of a broader push by Trump to test the limits of his power since returning to office. While the court has allowed him to remove other officials, it appears hesitant to let him interfere with the nation’s central bank.
In a recent hearing about Trump’s firing of a Federal Trade Commission member, the conservative justices appeared to support the president’s authority. A ruling in Trump’s favor in that case could upend decades of precedent and allow presidents to fire the heads of numerous independent agencies.
But the justices, particularly conservative Brett Kavanaugh, have repeatedly suggested the Fed is unique. In a court order issued earlier this year, they described the Federal Reserve as a “uniquely structured” entity with a special place in American history. During recent arguments, Kavanaugh directly told the administration’s lawyer, “I share those concerns” about undermining the Fed’s independence.
Economists and lawmakers have long believed that the Fed’s independence is crucial to keep politics out of decisions about interest rates and the economy. Trump’s lawyers argue that he fired Cook “for cause,” not policy differences, but many see it as a direct challenge to the Fed’s autonomy.
The Supreme Court now faces the difficult task of defining the president’s power while protecting one of the country’s most important economic institutions.
