In a significant ruling, the US Supreme Court on Monday expanded the powers of the president by allowing Donald Trump to remove the heads of several independent federal agencies. However, the court made an exception for the Federal Reserve, allowing Governor Lisa Cook to remain in office while her legal challenge continues.
The 6-3 decision marked a major shift in the balance of power between the White House and independent agencies. Chief Justice John Roberts, writing for the majority, was quoted as saying by Hindustan Times, "We hold that such protection from removal is contrary to the separation of powers enshrined in the Constitution."
The ruling overturns the long-standing Humphrey's Executor decision, a 91-year-old precedent that had restricted a president's ability to remove members of independent agencies without cause.
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Federal Reserve receives special protection
While the court sided with Trump on the broader issue of presidential authority, it declined to immediately remove Lisa Cook from the Federal Reserve Board. The justices voted 5-4 to allow her to stay in her position as her lawsuit moves forward.
Per HT, Roberts wrote, "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 nominated to the Federal Reserve Board by former president Joe Biden, has denied allegations of mortgage fraud that formed the basis of the administration's attempt to remove her.
Trump welcomes the verdict
Trump praised the decision in a post on Truth Social.
"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.
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The ruling could affect several agencies, including the Federal Trade Commission, the National Labor Relations Board and the Consumer Product Safety Commission.
Dissent warns of growing executive power
Justice Sonia Sotomayor strongly disagreed with the majority decision and delivered a dissent in court.
"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," Sotomayor said, per HT.
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Cook also defended her position, saying, "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."
FAQs:
What did the Supreme Court rule in Trump's case?
The court allowed presidents to remove many agency heads while making an exception for the Federal Reserve.
Why was Lisa Cook allowed to stay at the Federal Reserve?
The court said removing her immediately could weaken the Fed's independence while her lawsuit continues.
