The US Supreme Court has issued a landmark decision significantly expanding the president's authority to remove officials from independent federal agencies.

The ruling overturns a 1935 precedent that had long shielded such regulators from direct executive dismissal, marking a structural shift in the balance of power between the White House and the administrative state.

President Donald Trump welcomed the decision, framing it as a restoration of executive accountability.

The court’s opinion clarifies that while the president gains broader removal powers over many independent agencies, the Federal Reserve remains largely protected.

In a separate but related ruling earlier this year, the court blocked the Trump administration’s attempt to dismiss Federal Reserve Governor Lisa Cook, citing unlawful overreach.

The decision carries immediate implications for regulatory stability and market expectations.