Supreme Court Strips Independent Agencies of Firing Protection, July 24

Chief Justice John Roberts authored two Supreme Court decisions on June 29 that fundamentally altered presidential power over federal agencies. In Trump v. Slaughter, the court ruled 6-3 that the president can fire leaders of independent agencies for any reason, overturning the 1935 Humphrey’s Executor precedent. The same day, in Trump v. Cook, Roberts carved out an exception protecting the Federal Reserve’s independence, citing the nation’s long tradition of insulating monetary policy from political pressure.

What Slaughter overturned and why it matters

Trump v. Slaughter formally ended 90 years of legal protection for agency independence. The court held that congressionally imposed removal limits on agency heads violate the separation of powers. Because agencies like the Federal Trade Commission exercise executive power, the president must be able to fire their leaders at will to ensure he has “the assistance of officers he can trust.” This strips away the insulation Congress built into agencies to protect them from direct political control.

Why the Federal Reserve got different treatment

In Trump v. Cook, decided the same day, the court upheld removal limitations for the Federal Reserve chair. The majority pointed to the country’s “long tradition” of independent monetary regulation, explaining that the founders sought to insulate the economy from public suspicion of political manipulation of monetary policy. Columbia Law professor Kathryn Judge called it “good news but not great news for Federal Reserve independence,” noting it creates questions about how sustainable that independence will be.

What legal scholars say about the contradiction

The two decisions created immediate tension among legal experts. Columbia Law professor Lev Menand wrote that the opinions “read like they had been written by two different people.” Philip Hamburger, Maurice & Hilda Friedman Professor of Law at Columbia, argued in The Atlantic that the decision lays the foundation for a repudiation of administrative power and restoration of the separation of powers. John C. Coffee Jr., Adolf A. Berle Professor of Law, warned in the Los Angeles Times that the Slaughter decision will lead to “a loss of credibility for the SEC” as lobbyists redouble attacks and money dominates good arguments.

Broader pattern of expanded presidential power

Slaughter capped two years of Supreme Court rulings that shifted power toward the presidency. On July 1, 2024, the court granted President Trump substantial immunity from prosecution for official acts. In June 2025, Trump v. CASA limited nationwide injunctions, removing one of the courts’ fastest ways to block illegal orders. The Brennan Center found that the court sided with the administration in 21 of 28 shadow docket rulings tracked through October 2025. Both Slaughter and the immunity decision were grounded in the unitary executive theory, which holds that the president should have complete control of the executive branch.

Final Thoughts

The Slaughter ruling fundamentally shifts power from Congress to the presidency over federal agencies. With the Federal Reserve protected but other independent agencies now vulnerable to at-will removal, investors and regulated industries face a more politically responsive regulatory environment. The long-term stability of agencies like the SEC, FTC, and FERC now depends on presidential discretion rather than statutory protection.

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