The Supreme Court ruled Monday that President Donald Trump cannot fire Federal Reserve board member Lisa Cook while simultaneously granting him the power to remove a Democratic appointee from the Federal Trade Commission, Rebecca Slaughter. But that was not all...
In a 5-4 decision on Cook, the justices rejected Trump's attempt to fire her amid allegations of mortgage fraud, which Cook denies. The court's liberal justices joined the majority in this case, with Chief Justice John Roberts emphasizing the importance of protecting the Federal Reserve from political interference. He stated that accepting the administration's argument would effectively turn Cook's for-cause protection into at-will employment.
"For-cause protections ensure that central banking remains insulated from political influence," Roberts wrote. Cook welcomed the decision, asserting that Trump’s actions were an attempt to remove her due to political pressure as she continued to set interest rates based solely on the needs of the American people.
Despite Cook's ruling, the court also gave Trump a broader hand in controlling independent agencies by allowing him to fire FTC Commissioner Rebecca Slaughter. This 6-3 ruling overturned a key 1935 precedent, allowing presidents greater authority to remove members of independent agencies without needing specific cause.
Roberts pointed out in the Slaughter case that “subordinates who exercise the president’s power are subject to removal by him," a perspective that reflects the conservative majority's skepticism toward congressional restrictions on presidential authority.
Trump, who previously fired Slaughter and another Democratic commissioner from the FTC, expressed support for the ruling on social media, calling it a historic affirmation of presidential powers. In her response, Slaughter warned that the ruling would allow future presidents to prioritize political loyalty over principle, potentially jeopardizing the integrity of independent agencies.
Global markets have historically relied on the Federal Reserve's autonomy, and no U.S. president has attempted to fire a top Fed official until Trump. Under the Federal Reserve Act, presidents can remove board members only for cause, a legal hurdle that Cook's case has now exposed.
As Cook remains in her position for the time being, she has signaled her intent to contest Trump's allegations in court. Meanwhile, the Supreme Court's decision on Slaughter reflects an ongoing trend toward augmenting the president's power over independent federal agencies, challenging the traditional safeguards designed to maintain their independence.
Trump Loses 3 More Times at the Supreme Court Before Lunch
On Monday morning, the Supreme Court also dealt Trump 3 more separate defeats, all before lunch, in a series of rulings that upheld a sexual abuse verdict, protected mail-in voters in 14 states, and maintained legal protections that allow journalists to perform their jobs.
First, the justices declined to hear Trump's appeal regarding the E. Jean Carroll verdict, which confirmed the jury's finding that he sexually abused and defamed her. This also left intact the $5 million judgment against him.
In another significant decision, the Court voted 6 to 3 against the Republican National Committee's attempt to invalidate mail-in ballots that were mailed on time but arrived a few days late. This ruling protects voters in 14 states, including military personnel stationed overseas who may struggle to reach a mailbox by Election Day.
Finally, the Court chose not to revive Alan Dershowitz's $300 million defamation lawsuit against CNN. Legal experts had warned that this case could undermine protections that enable journalists to cover public figures without the threat of bankruptcy lawsuits.
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