The Japan Times - Supreme Court boosts Trump's power to fire officials, but protects Fed

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Supreme Court boosts Trump's power to fire officials, but protects Fed
Supreme Court boosts Trump's power to fire officials, but protects Fed / Photo: SAUL LOEB - AFP

Supreme Court boosts Trump's power to fire officials, but protects Fed

The US Supreme Court on Monday fortified President Donald Trump's powers to fire members of independent government agencies, but carved out protections for the Federal Reserve by blocking the firing of Governor Lisa Cook.

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In a 6-3 ruling, the court's conservative majority rejected a challenge by Democratic Federal Trade Commissioner Rebecca Slaughter, ruling that Trump had the power to fire "subordinates who exercise the President's power."

The decision is expected to have wide-ranging implications, with Trump having aggressively sought to expand executive powers as he works to transform the US government and put political allies in key positions.

Trump hailed the verdict.

"This Decision was long sought by United States Presidents, dating all the way back to the 1930s," he posted on social media.

"It is such an Honor to be the sitting President who won this Historic and Unprecedented Ruling, one of the most important ever given with respect to Presidential Powers."

In a separate case involving Cook, however, the Supreme Court ruled that while Trump had the power to fire Federal Reserve governors for cause, he could not do so "for any reason or no reason."

The US central bank is a non-partisan institution that makes monetary policy for the world's largest economy, with governors appointed by the president after a Senate confirmation process.

The court made special mention of the importance of the Fed's independence.

"Not only the fact of independence but also the appearance of independence is key to the Federal Reserve's design," its split 5-4 verdict read.

The court decided the case "on the narrow ground that the President failed to afford Cook the procedural protections to which she was entitled by statute," the verdict said.

It dismissed the "halfhearted contention" that the Fed governor had received due process.

Cook welcomed the decision, saying it "affirms" the central bank's independence.

"Today's ruling affirms a principle that has underpinned sound economic stewardship for generations: that the Federal Reserve must make all its policy decisions guided by evidence and independent judgment, free from political interference," she said in a statement.

Trump has exerted unprecedented pressure on the Fed to lower interest rates to boost economic activity, and his attempt to fire Cook was the first time a president had tried such a move in the bank's 111-year history.

Cook denies the allegations, and the Supreme Court said that a decision on her future at the Fed could only be made once she has had an opportunity to respond to the charges.

M.Fujitav--JT