US Supreme Court Shields Federal Reserve from Trump Removal

The U.S. Supreme Court ruled that President Donald Trump has the authority to remove certain federal labor board members without cause, specifically allowing the firing of Gwynne Wilcox from the National Labor Relations Board and Cathy Harris from the Merit Systems Protection Board. However, the court distinctly protected the Federal Reserve, emphasizing its unique quasi-private structure and legal safeguards that prevent the dismissal of its officials, including Chair Jerome Powell, except for cause such as misconduct. This decision eases concerns about potential political interference with the Federal Reserve's independence amid Trump's past criticisms of Powell and calls for his removal. Legal experts have expressed relief that the ruling maintains the Fed's insulation from political whims, preserving stability for financial markets. The ruling underscores a legal firewall between the president's removal powers over typical executive officers and the special protections afforded to Federal Reserve officials. While the court allowed Trump to proceed with firing the two board members, it reaffirmed that such actions do not extend to the Federal Reserve, preserving its operational autonomy.