Supreme Court Weighs Presidential Power Over Independent Agencies, Federal Reserve at Stake

Supreme Court Hears Case on Presidential Power to Fire Agency Leaders The Supreme Court heard arguments on Monday regarding the scope of presidential power to fire leaders of independent agencies, with a key question raised about the potential impact on the Federal Reserve's independence. Justice Brett M. Kavanaugh asked Solicitor General D. John Sauer, representing the Trump administration, whether a ruling in favor of the president would jeopardize the Fed's independence, potentially spooking the markets and endangering the economy. The case before the court concerns Rebecca Kelly Slaughter, a member of the Federal Trade Commission whom President Trump wants to fire. The president maintains that the Constitution's separation of powers allows him to remove such officials for any reason or no reason at all, despite a federal law requiring him to provide a reason. The justices are considering whether this law is constitutional and whether it limits the president's power to fire agency leaders. The Solicitor General argued that a ruling in favor of the president would not affect the independence of the Fed, but it was unclear whether he had a principled theory to support this claim. The justices seemed skeptical, with some questioning whether the administration's position would set a precedent that could undermine the independence of other agencies. The case has significant implications for the balance of power between the executive and legislative branches of government. If the Supreme Court rules in favor of the president, it could give him complete control over the F.T.C. and other agencies, potentially allowing him to exert significant influence over the economy. The Supreme Court is expected to issue a ruling in the coming months. In the meantime, the case has sparked concerns about the potential impact on the Federal Reserve's independence and the stability of the financial markets.