The US Supreme Court on Monday ruled in favor of President Donald Trump's dismissal of a Democratic Federal Trade Commission member, significantly expanding presidential authority over independent regulatory agencies and overturning a 1935 precedent that had protected agency leaders from at-will removal.
Landmark Decision Overturns 1935 Precedent
In a 6-3 decision driven by the court's conservative majority, the justices invalidated tenure protections for FTC members that Congress had enacted over a century ago. The ruling overruled the court's pivotal decision in Humphrey's Executor v. United States, which had recognized Congress's power to shield leaders of certain regulatory agencies from presidential removal without cause.
Chief Justice John Roberts, writing for the majority, stated that Trump's authority to dismiss FTC Commissioner Rebecca Slaughter over policy differences "is not a close case." The court's three liberal justices dissented.
FTC Removal Provisions Unconstitutional
"The FTC's for-cause removal provision violates the separation of powers," Roberts wrote. "In its present form, the FTC enforces and administers some 80 statutes, which cover almost every facet of our Nation's economy. The tasks it undertakes are 'the very essence of execution of the law' - precisely the president's constitutional role."
Trump had dismissed Slaughter last year, citing policy differences. The court's ruling affirmed that removal protections for FTC members unlawfully encroached on presidential power under the U.S. Constitution.
Federal Reserve Independence Preserved
In a separate landmark ruling on the same day, the court refused to let Trump fire Federal Reserve Governor Lisa Cook, standing firm to preserve the central bank's independence. The justices signaled that Monday's decision should not be seen as undermining the Federal Reserve, describing the US central bank as possessing a unique historical tradition.
The contrasting outcomes highlight the court's nuanced approach: while expanding presidential power over independent agencies like the FTC, it recognized the Federal Reserve's distinct status and long-standing independence from political control.
