The final decisions of the Supreme Court before the end of its session were highly anticipated. They represent a mixed bag for Donald Trump.
The Supreme Court upheld, by a 6 to 3 vote, the dismissal of Democratic FTC (Federal Trade Commission) member Rebecca Slaughter. Donald Trump had terminated her duties in March 2025.
In doing so, the Court breaks with a 1935 legal precedent. At that time, the Supreme Court opposed Democratic President Franklin Roosevelt's attempt to fire an FTC member over policy disagreements.
"To 'discharge the duties of his office,' the President must be able to rely on the assistance of high-ranking officials in whom he has confidence," the six conservative justices wrote. Moving forward, Donald Trump will have full latitude to fire the heads of federal agencies.
The Fed as an Exception
This decision is therefore a victory for Donald Trump, who since the beginning of his second term has sought to rely on the Supreme Court to expand the prerogatives of presidential power.
Nevertheless, the American president suffered a setback. In a separate case, the Supreme Court ruled in favor of Lisa Cook, whom Donald Trump had attempted to fire last August. He had accused the Fed Governor of mortgage fraud. Lisa Cook immediately challenged the dismissal in court, arguing it was motivated by political differences.
In January, the Supreme Court hearing already suggested a favorable outcome, as the justices appeared skeptical of the administration's arguments.
The decision was passed by a 5 to 4 vote. Two conservative justices, John Roberts and Brett Kavanaugh, supported it, alongside the Court's three progressive justices.
Federal Reserve governors "are not appointed at the pleasure of the President: they instead serve staggered 14-year terms and can only be removed for cause," wrote Chief Justice John Roberts in his ruling.
The Court specified, however, that its ruling does not decide the validity of the underlying dispute. The case will therefore return to the lower courts, where proceedings had been stayed pending the Supreme Court's opinion.
Fed Independence Strengthened
This decision strengthens the independence of the Fed, which has been challenged by Donald Trump since his return to power. He had also tried, unsuccessfully, to pressure Jerome Powell into resigning.
"We see no reason to leave the public in uncertainty, or to sow doubt as to the status of one of the most important financial institutions in our country (and the world)," John Roberts added.
According to the Federal Reserve Act, the President can only fire a Fed governor for "cause." In the initial ruling, Judge Cobb did not find that the allegations against Lisa Cook justified her dismissal. Firstly, because the facts were not related to the performance of her duties, and secondly, because they concerned a period prior to her appointment to the Fed.
In more than a century of the Fed's existence, no president had ever attempted to remove a governor.
As Nick Timiraos points out in the Wall Street Journal, this decision is also good news for Kevin Warsh. While his predecessor, Jerome Powell, was under constant pressure from Donald Trump, the Supreme Court is giving Kevin Warsh greater room to maneuver and act independently.
