The U.S. Supreme Court ruled that the President does not have the authority to fire the Fed Chair, protecting Jerome Powell amid rumors Trump wanted to dismiss him. This decision reinforces the independence of the Federal Reserve, even though Trump had previously criticized Powell publicly.
Not All Agencies Are Equal
A ruling on May 23 reported by Bloomberg asserts that the President can fire the heads of certain federal agencies like the NLRB and MSPB, but this does not apply to the Fed.
The Court views the Fed as a 'semi-private entity with a unique structure,' placing it beyond Trump's control.
Relief for Jerome Powell
The Supreme Court's ruling helps secure the position of Fed Chair Jerome Powell, despite previous threats of dismissal from Trump.
While expanding presidential powers with some federal agencies, the ruling excludes the Fed, affirming the special independence of the central bank.
However, Justice Elena Kagan dissented, arguing that this is a 'special rule' politically motivated to protect the Fed, undermining the principle of preventing presidential power from interfering with independent agencies.
The crypto community also criticized, claiming that this decision inadvertently confirms the Fed as a powerful entity beyond public control.
Although Powell remains temporarily in place, the ruling reignites debate over presidential power and the independence of federal agencies, as global markets closely monitor how the U.S. balances power and economic stability.