The Supreme Court just handed down two rulings that look like they contradict each other. In one, the court told President Trump he cannot fire Federal Reserve Governor Lisa Cook. In the other, it said he can fire the heads of agencies like the SEC and CFTC whenever he wants.
The 5-4 decision in Trump v. Cook, issued on June 29, preserved the for-cause removal protections that have shielded Fed governors since the Federal Reserve Act established their staggered 14-year terms. Chief Justice John Roberts wrote that allowing at-will removal would effectively gut those protections entirely.
The Fed stays protected, but everyone else is fair game
The companion case, Trump v. Slaughter, went the opposite direction. The court ruled that the president does have the power to dismiss commissioners of other independent agencies without cause. That overturns Humphrey’s Executor, a precedent that has stood since 1935.
The practical effect is that agencies like the Securities and Exchange Commission and the Commodity Futures Trading Commission now have leadership that serves at the president’s pleasure.
