The U.S. Supreme Court on Monday strengthened President Donald Trump’s power to fire members of independent government agencies but provided protections for them Fed Prevent the governor from being fired Lisa Cook.
In a 6-3 decision, the court’s conservative majority rejected Democratic Trade Commissioner Rebecca Slaughter’s challenge, ruling: trump card The authority to fire “subordinates exercising presidential authority.”
The decision is expected to have widespread ramifications as Trump aggressively seeks to expand executive powers as he works to reform the U.S. government and put political allies in key positions.
Trump reacts to SC ruling
Trump welcomed the verdict.
“Presidents of the United States have been seeking this decision as far back as the 1930s,” he posted on social media.
“I am deeply honored as a sitting president to win this historic, unprecedented ruling, one of the most important rulings ever on presidential power.”
However, in a separate case involving Cook, the Supreme Court ruled that while Trump has the authority to fire Fed governors with cause, he cannot do so “for any reason or without reason.”
The U.S. central bank is a nonpartisan agency that sets monetary policy for the world’s largest economy, with a president appointed by the president following a Senate confirmation process.
The court specifically noted the importance of the Federal Reserve’s independence.
“Not only the fact of independence, but also the appearance of independence is key to the Fed’s design,” its 5-4 split ruling read.
The court ruled in the case “on the narrow basis that the President failed to provide Cook with the procedural protections to which she is entitled under the law,” the ruling said.
It dismissed “half-hearted arguments” that Fed governors had received due process.
Lisa Cook welcomes SC ruling
Cook welcomed the decision, saying it “affirmed” the central bank’s independence.
“Today’s ruling affirms a principle that has underpinned good economic management for generations: The Federal Reserve must make all policy decisions guided by evidence and independent judgment, free from political interference,” she said in a statement.
Trump has put unprecedented pressure on the Fed to lower interest rates to boost economic activity, and his attempt to fire Cook was the first time a president has attempted such a move in the Fed’s 111-year history.
Cook has denied the charges, and the Supreme Court said a decision on her future at the Fed can only be made after she has had a chance to respond to the charges.
