On June 29, major news outlets including AP, Reuters, and The New York Times reported that the Supreme Court found Trump’s action against Slaughter valid. The decision passed with a 6-3 vote among the conservative justices.
This ruling effectively overturns a 1935 precedent that limited the president's ability to dismiss officials from independent regulatory agencies without just cause. The Court stated that agencies like the FTC, which exercise executive authority, cannot be entirely free from presidential control.
As a result, this decision may impact other independent agencies, such as the Consumer Product Safety Commission and the Nuclear Regulatory Commission. Trump welcomed the ruling on Truth Social, calling it a decision sought by U.S. presidents since the 1930s.
However, on the same day, the Supreme Court did not accept Trump’s attempt to dismiss Cook. The justices ruled 5-4 that Cook could remain in her position while her lawsuit is ongoing. Chief Justice John Roberts and Justice Brett Kavanaugh sided with the three liberal justices in this decision.
The Court noted that Cook had not been given sufficient opportunity to explain herself. While it did not make a final determination on the legality of the dismissal, it indicated that different procedural protections are necessary for dismissals of Fed governors compared to other independent agencies.
Roberts emphasized that the Fed is a key institution that influences both the U.S. and global financial markets. He stated that the independence of the Fed is not only important in practice but also in perception.
This ruling strengthens Trump’s attempts to exert control over independent agencies while applying separate standards to the Fed, which holds the authority to set interest rates. Trump has publicly pressured the Fed to lower rates and his attempt to dismiss Cook has sparked controversy regarding the Fed's independence.
Last year, Trump announced Cook’s dismissal, alleging she submitted false information during the mortgage process. Cook has denied the allegations, asserting that the attempt to remove her was due to her refusal to succumb to political pressure.
Following the ruling, Cook stated that it reaffirmed the need for the Fed to make policy decisions based on evidence and independent judgment. In contrast, Trump indicated he would take further action to prevent individuals with misconduct from making key decisions.
Critics argue that the ruling is inconsistent, as it expands presidential authority over independent agencies while exempting the Fed. With the conservative majority in the Supreme Court issuing rulings that broaden presidential powers and executive control, legal battles over the structure of U.S. independent agencies and the independence of the Fed are expected to continue.
* This article has been translated by AI.
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