The Supreme Court just told the president he can fire the heads of most independent agencies whenever he wants. The Federal Reserve, however, gets to keep its bodyguard.
On June 29, the Court issued two landmark decisions that redraw the boundaries of presidential power over federal agencies. In a 5-4 ruling in Trump v. Cook, the justices affirmed that President Trump cannot remove Federal Reserve Governor Lisa Cook without cause. In a separate 6-3 decision issued the same day, the Court effectively dismantled for-cause removal protections for the leaders of most other independent agencies.
The Fed gets a firewall, everyone else gets a pink slip
Chief Justice John Roberts authored the majority opinion in Trump v. Cook, and his reasoning hinged on what he described as the unique historical and institutional role of the Federal Reserve.
Cook herself responded to the ruling by saying it affirms the Fed’s independence, which she called vital for price stability and maximum employment.
