- By Raju Kumar
- Mon, 29 Jun 2026 10:40 PM (IST)
- Source:JND
- US Supreme Court backs Trump's firing of FTC member.
- Ruling expands presidential power over independent regulatory agencies.
- Overturns 1935 precedent, safeguards Federal Reserve's independence.
In a landmark order, the US Supreme Court on Monday upheld President Donald Trump's firing of a Democratic Federal Trade Commission member. The top court's ruling expanded Trump's powers over the government and overturned its 1935 precedent that had recognised the authority of Congress to protect leaders of certain regulatory agencies from presidential removal at will.
In a 6-3 court's conservative majority, the apex court invalidated tenure protections for FTC members enacted by Congress more than a century ago.
The Supreme Court overruled the court's pivotal decision in a case called Humphrey's Executor v. United States. Trump last year dismissed the FTC's Rebecca Slaughter over policy differences.
No Impact On Federal Reserve's Independence: SC
However, the top court signalled that its order should not be seen as undermining the Federal Reserve's independence, with the justices describing the US central bank as possessing a unique historical tradition.
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The Supreme Court, in another ruling, refused to let Trump fire Federal Reserve Governor Lisa Cook as it stood firm to preserve the central bank's independence, ruling that removal protections for FTC members unlawfully encroached on presidential power under the US Constitution.
What Chief Justice Of US Said
Chief Justice John Roberts observed that Trump's authority to dismiss Slaughter last year over policy differences "is not a close case."
"The FTC's for-cause removal provision violates the separation of powers. In its present form, the FTC enforces and administers some 80 statutes, which cover almost every facet of our Nations economy. The tasks it undertakes are 'the very essence of execution of the law' precisely the president's constitutional role," Roberts wrote in his order.
Slaughter, appointed to her post by Democratic former President Joe Biden, was one of two Democratic FTC commissioners who Trump moved to fire in March 2025 from the consumer protection and antitrust agency. Slaughter's term was due to run until 2029.
What 1914 Law Says On President's Power To Remove FTA
A 1914 law passed by Congress permitted a President to remove FTC commissioners only for cause - such as inefficiency, neglect of duty or malfeasance in office - but not for policy differences. Similar protections cover officials at more than two dozen other independent agencies, including the National Labour Relations Board and Merit Systems Protection Board. It was not immediately clear whether the independence of these other agencies would be stripped as a result of Monday's ruling.
(With Reuters Inputs)
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