This week, the U.S. Supreme Court significantly limited Donald Trump’s authority—while it granted him the power to remove certain federal officials, it firmly stated that the Federal Reserve is off-limits. In a landmark ruling, the court erected a legal barrier that shields America’s central bank from presidential interference.

🔹 President Can Fire Some, But Not All

In a 6–3 decision, the Court ruled that Trump had the authority to dismiss Gwynne Wilcox, a former member of the National Labor Relations Board (NLRB), and Cathy Harris of the Merit Systems Protection Board (MSPB). Both women were appointed to their positions but were removed by Trump during his presidency. They sued, arguing that the president had exceeded his legal authority.

While lower courts initially sided with them, the Supreme Court overturned those rulings. The justices argued that the U.S. Constitution grants the president executive power, which includes the right to remove officials who exercise that power on his behalf—unless a specific exception applies.

🔹 The Fed Is a Protected Zone

However, the justices were crystal clear: this ruling does not apply to the Federal Reserve. The Court stated that the Fed is a "uniquely structured, historically distinct entity" and cannot be compared to other federal agencies.

This means that no president—not even Trump—can freely fire leaders of the central bank without violating the law. That’s a key point given Trump’s history of tension with Federal Reserve Chair Jerome Powell, whom he appointed but later sharply criticized.

🔹 Court: The Fed Is Not Part of Routine Executive Power

The ruling makes it clear that the Federal Reserve is viewed as an independent institution. It is not a direct part of the president’s executive branch and therefore cannot be governed in the same manner as typical federal offices.

The Court reasoned that the government might suffer more harm if a removed official remained in power than if someone were unlawfully dismissed. But this reasoning doesn’t apply to the Fed, which operates under a special legal status.

🔹 Liberal Justices Disagree

Three liberal justices—Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson—dissented. They believed that removing Wilcox and Harris before the legal process was complete was unfair and premature. However, the majority stood firm, allowing Trump to remove the officials—for now.

🔹 Powell Defends His Position

Federal Reserve Chair Jerome Powell has previously made his stance clear. During Trump’s public criticism of the Fed, Powell said at a press conference in November: "The law does not require me to resign—and I will not."

Now, with the Supreme Court's decision, Powell has the backing of the nation’s highest court. Donald Trump—and any future president—will have to accept that they cannot interfere with the operations of the Federal Reserve.




#TRUMP , #USPolitics , #USGovernment , #worldnews , #JeromePowell

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“