The US Supreme Court on Monday significantly expanded presidential authority by ruling that presidents can remove the heads of most independent federal agencies without needing to show cause. However, the court made an exception for the Federal Reserve, allowing Governor Lisa Cook to remain in her position while her legal challenge continues.
Court overturns 91-year-old precedent
In a 6-3 ruling, the court overturned the 1935 Humphrey’s Executor decision, which had restricted a president’s power to dismiss officials from independent agencies.
Chief Justice John Roberts wrote, ‘We hold that such protection from removal is contrary to the separation of powers enshrined in the Constitution.’
The ruling came in the case of former Federal Trade Commission member Rebecca Slaughter, who was dismissed by President Donald Trump despite federal protections requiring a valid reason for removal.
Trump welcomes decision
Reacting to the verdict, Trump called it a major victory for presidential authority.
‘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,’ he wrote on Truth Social.
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The decision is expected to affect other independent agencies, including the National Labor Relations Board, Merit Systems Protection Board and Consumer Product Safety Commission.
Federal Reserve treated differently
In a separate 5-4 decision, the Supreme Court refused to immediately remove Federal Reserve Governor Lisa Cook from office.
Roberts said allowing her removal before the legal process ends ‘would allow the President to remove a member of the Federal Reserve at any time, for any reason, without any notice before, and without any judicial check after. That would turn for-cause protection into little more than at-will employment.’
Cook, who was appointed by former President Joe Biden, will continue serving while the case proceeds.
Justice Sonia Sotomayor criticised the ruling, warning it could lead to ‘submission, instability, and even oppression.’
She added, ‘The president, to be sure, emerges with more power than ever before. That power was given to him by six justices on this court, not the people or the Constitution.’
Cook denies allegations
Trump sought to remove Cook over allegations that she improperly listed two properties as primary residences on mortgage applications in 2021. Cook has denied any wrongdoing and has not been charged with a crime.
Responding to the case, she said, ‘It was an attempt to remove me on a manufactured pretext because I refused to bow to political pressure and continued to set interest rates based only on what would best serve the American people. That is the most fundamental obligation of a Federal Reserve governor.’
The ruling is expected to reshape the balance of power between the US presidency and independent federal agencies, while preserving the Federal Reserve’s independence for now.
First published on: Jun 30, 2026 07:11 AM IST
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