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Supreme Court Signals Federal Reserve Is Off-Limits to Trump Firings
The Supreme Court treats the Federal Reserve differently by signaling that Fed governors can only be removed for cause, preserving its independence from executive control.
- At the Supreme Court in Washington on Wednesday, the justices weighed President Donald Trump's effort to remove Federal Reserve governor Lisa Cook and signaled they were inclined to keep her in place while litigation continues.
- The dispute hinges on the statute making Fed governors removable only `for cause`, with justices citing the Fed's quasi‑private structure, historical links, and market role for special treatment.
- Legal scholars and counsel contest the Fed/agency distinction, with Paul Clement arguing the court’s acceptance of Fed differences is questionable and could weaken independence, according to Statement 12, 17, 21, 7, 32.
- The court's conservative majority flagged sweeping legal changes, suggesting it might overturn a 90‑year‑old precedent limiting presidential firing power, while Justice Brett Kavanaugh warned removal `would weaken, if not shatter, the independence of the Federal Reserve`, complicating the White House's immediate removal effort.
- The Supreme Court may later issue broader rulings explaining why the Fed is treated differently, as it signals a potential shift after the past year of permitting removals, with some justices raising concerns.
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33 Articles
33 Articles
Associated Press News+32 Reposted by 32 other sources
In the case of the Federal Reserve, Supreme Court appears to carve out a murky exception
The Supreme Court for the past year has repeatedly allowed President Donald Trump to fire heads of independent agencies, but it appears to be drawing a line with the Federal Reserve.
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Total News Sources33
Leaning Left5Leaning Right2Center19Last UpdatedBias Distribution73% Center
Bias Distribution
- 73% of the sources are Center
73% Center
L 19%
C 73%
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