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The U.S. Supreme Court on Monday issued a pair of landmark rulings that delivered both a victory and a setback for President Donald Trump, preserving Federal Reserve Governor Lisa Cook’s job for now while dramatically expanding presidential authority over most independent federal agencies.
In two decisions authored by Chief Justice John Roberts, the court ruled Trump cannot immediately remove Cook from the Federal Reserve Board without following statutory procedures, but simultaneously overturned a 90-year-old precedent that had limited presidents’ ability to fire members of independent regulatory agencies such as the Federal Trade Commission.
Together, the rulings reshape the balance of executive power while carving out a unique constitutional exception for the Federal Reserve.
Court preserves Federal Reserve independence
In the first case, the court voted 5-4 to reject Trump’s effort to immediately remove Cook, who was dismissed by the president in August after allegations of mortgage fraud made by Federal Housing Finance Agency Director Bill Pulte. Cook has denied wrongdoing, and lower courts previously blocked her removal while litigation continued.
Writing for the majority, Roberts said accepting the administration’s argument would effectively erase Congress’ protections for Federal Reserve governors.
“To accept any of those arguments would in effect transform the Federal Reserve’s for-cause protection into at-will employment,” Roberts wrote.
He added that such a move would be inconsistent with both federal law and America’s longstanding tradition of maintaining an independent central bank insulated from political influence.
The ruling allows Cook to remain on the Federal Reserve Board while her legal challenge proceeds.
However, Roberts emphasized that Trump could still attempt to remove her if he follows the procedures required by the Federal Reserve Act, including providing notice and an opportunity for Cook to respond before any final decision.
The court did not determine whether the allegations against Cook have merit.
Trump vows further action
Following the ruling, Cook welcomed the decision, accusing the administration of attempting to remove her for political reasons.
She said Trump’s actions were designed to punish her for refusing “to bow to political pressure” while helping set U.S. monetary policy.
Trump responded on Truth Social by pledging to continue pursuing her removal.
“We will take appropriate action immediately to make sure that someone who has committed wrongdoing will not be making vital decisions concerning the Welfare of the United States of America!” the president wrote.
Pulte also indicated additional action could follow, saying he believes Cook ultimately will face criminal charges related to the mortgage allegations.
Court overturns 1935 precedent
While protecting Cook, the Supreme Court delivered a far broader victory for Trump in a separate ruling involving former Federal Trade Commission Commissioner Rebecca Kelly Slaughter.
In a 6-3 decision split along ideological lines, the court overturned Humphrey’s Executor v. United States, the landmark 1935 decision that limited presidential authority to remove commissioners serving on independent federal agencies.
The court ruled that Congress cannot broadly insulate executive branch officials from presidential removal.
“Our Constitution creates three branches, but only one president,” Roberts wrote.
“Subordinates who exercise the president’s power are subject to removal by him. Then, and only then, can they remain accountable to the president, and the president to the people.”
The ruling permits Trump to dismiss Slaughter and establishes a precedent that applies to numerous independent federal agencies with similar removal protections.
Independent agencies lose long-standing protections
Although the FTC case directly concerns only Slaughter, legal analysts say the ruling is expected to affect agencies across the federal government.
The decision strengthens presidential authority over organizations including:
- Federal Trade Commission
- Consumer Product Safety Commission
- Equal Employment Opportunity Commission
- Surface Transportation Board
- Other agencies historically designed to operate independently of the White House
Trump has already removed members from several of those agencies since returning to office in January 2025.
The court concluded that the Federal Reserve occupies a unique constitutional position because of its history, structure and role in setting national monetary policy.
Slaughter warns of political consequences
Slaughter criticized the decision, warning that it weakens independent oversight of government.
“Today’s ruling makes it possible for presidents to fire watchdogs who won’t put politics over principle, and replace them with lapdogs,” she said.
Trump celebrated the broader decision as one of the most significant victories of his presidency.
“It is such an Honor to be the sitting President who won this Historic and Unprecedented Ruling, one of the most important ever given with respect to Presidential Powers,” Trump posted on Truth Social.
Broader implications
The decisions continue the Supreme Court’s trend of expanding presidential authority over the executive branch while preserving the Federal Reserve’s unique independence.
Trump has repeatedly criticized the Federal Reserve since returning to office, frequently calling for lower interest rates and publicly attacking former Chair Jerome Powell before Kevin Warsh was confirmed to lead the central bank.
The rulings also come as Trump continues reshaping the federal government through executive action, including firing thousands of federal employees and seeking greater control over agencies traditionally insulated from White House influence.
While Monday’s decisions preserve the Federal Reserve’s independence for now, they significantly narrow similar protections for nearly every other independent federal agency.
