The US Supreme Court has significantly expanded the president’s authority to dismiss heads of independent federal agencies, marking a major shift in the balance of executive power.
In two rulings issued on June 29, the conservative majority granted President Trump the ability to remove top officials at will, effectively dismantling long-standing protections for regulatory bodies.
The decision overturns a 1935 precedent that had shielded such agencies from direct presidential control.
However, the court explicitly excluded the Federal Reserve from this new authority, preserving the central bank’s statutory independence.
This distinction is critical for market participants who rely on the Fed’s insulation from political pressure to maintain monetary policy credibility.
The ruling follows a period of heightened tension between the White House and independent regulators.