The Supreme Court delivered a split decision Monday that prevents President Donald Trump from firing Federal Reserve board member Lisa Cook while simultaneously dismantling nearly 90 years of protections that shielded independent federal agencies from presidential control—a ruling that fundamentally reshapes executive power over the federal bureaucracy.
Federal Reserve Gets Unique Shield From Political Pressure
Chief Justice John Roberts authored both decisions, which arrived simultaneously but reached opposite conclusions. In a 5-4 ruling, the Court rejected Trump’s attempt to remove Cook for cause over mortgage fraud allegations she denies. Roberts stated that accepting the administration’s arguments would transform the Federal Reserve’s for-cause protections into at-will employment, contradicting the nation’s tradition of central banking protected from political interference. The decision preserved the Fed’s independence as uniquely separate from other government agencies.
Cook welcomed the ruling, stating Trump’s actions were an attempt to remove her on manufactured pretexts because she refused to bow to political pressure on interest rate decisions. Trump responded on Truth Social, vowing to take immediate action to ensure someone he claims committed wrongdoing cannot make vital decisions affecting American welfare, signaling his intention to pursue her removal through other means.
Independent Agencies Lose Constitutional Protection
The second ruling delivered Trump a major victory by overturning the landmark 1935 Humphrey’s Executor decision that restricted presidential power to fire Federal Trade Commission members. In a 6-3 decision along ideological lines, the Court allowed Trump to remove FTC member Rebecca Kelly Slaughter, whom he fired in March 2025. Roberts wrote that the Constitution creates only one president, and subordinates exercising presidential power must remain removable to ensure accountability to the president and ultimately to voters.
The Slaughter ruling extends beyond the FTC to any federal agency with similar firing restrictions. While only Roberts and Justice Brett Kavanaugh joined both majorities, the conservative bloc united to dismantle protections Congress established to insulate regulatory agencies from political interference. Trump celebrated the decision as historic and unprecedented regarding presidential powers.
What This Means For Federal Government Power
The dual rulings create a Federal Reserve exception to the Court’s general expansion of executive authority over independent agencies. Slaughter warned the consequences will affect every American by subjecting independent agencies to presidential political whims. The decisions reflect the conservative majority’s broader skepticism toward what critics call the federal bureaucratic deep state, while carving out special status for the central bank’s role in monetary policy. Trump now possesses freer rein to reshape regulatory agencies that Congress specifically designed to operate beyond direct presidential control.