US Supreme Court widens presidential power over agency removals, spares Fed

Washington,UPDATED: Jun 29, 2026 20:24 IST

The US Supreme Court on Monday expanded presidential power by upholding President Donald Trump's removal of the heads of independent federal agencies, while making one exception for the Federal Reserve. The ruling means presidents can remove agency heads at will in most cases, despite federal laws that say such dismissals must be backed by a reason.

The court, however, allowed Federal Reserve governor Lisa Cook to remain in her post while she challenges Trump's attempt to remove her over allegations of mortgage fraud, which she has denied. In doing so, the nine-member court set aside its 91-year-old unanimous ruling in Humphrey's Executor, which had limited when presidents could remove members of agency boards in order to protect decisions from political influence.

With the court's six conservative justices in the majority, the ruling came in the case of former Federal Trade Commission member Rebecca Slaughter, whom Trump had removed without cause despite a federal law requiring one. The court's reasoning also applies to other agencies where Trump has removed board members, including the Labour Relations Board, the Merit Systems Protection Board and the Consumer Product Safety Commission. The court said the exception was the Federal Reserve, given its role in setting interest rates.

In Cook's case, the court voted 5-4 against the Trump administration's bid to remove her immediately. Chief Justice John Roberts, Justice Brett Kavanaugh and the court's three liberal justices formed the majority in that decision. Cook was nominated to the Federal Reserve's Board of Governors by then President Joe Biden. Overall, the ruling broadens a president's authority over independent agencies, while leaving Cook in place for now as her case continues.

With PTI Inputs

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