US Supreme Court expands Trump’s authority to remove agency leaders, exempts Federal Reserve board member

WASHINGTON: The US Supreme Court on Monday (local time) significantly expanded President Donald Trump’s authority to remove leaders of executive branch agencies, overturning a 91-year-old precedent that limited the President’s power to dismiss Senate-confirmed officials, Politico reported.

However, the court declined to immediately allow Trump’s removal of Federal Reserve Governor Lisa Cook, leaving her in office while litigation continues, as reported by Politico.

In a 6-3 decision along ideological lines, the court overruled the 1935 Humphrey’s Executor precedent, which had allowed the US Congress to restrict the President’s authority to remove the heads of certain independent agencies except for “inefficiency, neglect of duty, or malfeasance in office”.

US Chief Justice John Roberts, writing for the majority, said the precedent could no longer stand in a case involving US Federal Trade Commission (FTC) Commissioner Rebecca Slaughter, whom Trump attempted to dismiss in March 2025, Politico reported.

“If anything more is left of Humphrey’s, we overrule it”, Roberts wrote. “This is not a close case…. The FTC unquestionably exercises executive power and must therefore be controlled by the Chief Executive, in whom such power is vested. It follows, then, that Slaughter served as the President’s subordinate at the FTC–and that the President was entitled to cut her tenure short”.

WOW! President Trump can officially FIRE Democrat appointees across the FTC and executive branch thanks to SCOTUS

“Today’s Historic Slaughter Decision by the Supreme Court is the Greatest Increase in Presidential Power in the last 100 years. Such a Monumental Ruling at such… pic.twitter.com/5hc6kliGBo

— Eric Daugherty (@EricLDaugh) June 29, 2026

Slaughter had been informed by the White House through an email that her continued service was “inconsistent with the administration’s priorities”, without any detailed explanation for her dismissal.

In a separate 5-4 ruling, however, the Supreme Court rejected Trump’s attempt to immediately remove Federal Reserve Governor Lisa Cook, allowing her to remain on the Fed’s Board while legal proceedings continue, Politico reported.

Trump had sought Cook’s dismissal last August, alleging “deceitful and potentially criminal conduct” related to mortgage applications. Cook has denied any wrongdoing.

Writing for the majority, Roberts said the President’s process for seeking Cook’s removal failed to meet minimum procedural standards. “The President’s post did not suggest that a response from Cook would be appropriate, nor did it even provide a clear account of the charge made against her. It instead read simply, ‘Cook must resign, now!!!’ and linked to a news article,” Roberts wrote in its ruling.

“That will not do. At minimum, Cook was entitled to some explanation of the evidence at issue, some avenue for a response, and a deadline by which a response would be due,” it added.

US Justice Brett Kavanaugh joined Roberts and the court’s three liberal justices in the decision involving Cook. The ruling does not permanently bar Trump from removing Cook but requires the administration to restart the process while providing due process protections, Politico reported.

The court did not specify what level of evidence would ultimately justify her dismissal. The decision is expected to provide some protection for the Federal Reserve’s independence as the central bank navigates monetary policy.

Newly appointed Federal Reserve Chair Kevin Warsh is facing the possibility of interest rate increases amid persistent inflation, despite Trump’s repeated calls for lower rates.

Following the ruling, Cook said Trump’s effort to remove her “was never about mortgage documents signed years before I became a Federal Reserve governor”.

“The Supreme Court’s decision to leave the lower court’s order in place and affirm the need for real process and real cause recognizes that Federal Reserve independence is essential to fulfilling the congressional mandate of price stability and maximum employment,” Cook added, as quoted by Politico. (ANI)