High Court's Dual Ruling
Supreme Court Allows Fed's Cook to Remain, Upholds Other Trump-Era Firings
The Supreme Court handed President Trump a split victory on June 29, 2026, reshaping the power of the White House over federal agencies. The Court voted 6-3 to let Trump fire most independent agency heads at will, wiping out a 91-year-old legal shield. But in a separate 5-4 vote, it ruled that Federal Reserve Governor Lisa Cook cannot be immediately removed while her case continues in court, according to AP News.
The rulings effectively ended the era of broad agency independence. Trump called it a "Historic and Unprecedented Ruling" on Truth Social. Cook, the first Black woman to serve on the Fed Board, said she was "grateful for this decision... for the sake of the American people," per AP News.
Humphrey's Executor Falls After 91 Years
Since 1935, the legal case *Humphrey's Executor v. United States* had protected the heads of agencies like the FTC from being fired without cause. The Trump administration argued that protection violated the Constitution, which gives executive power solely to the President. The Court agreed, with all six conservative justices voting to overturn the precedent, according to Bloomberg.
The case centered on FTC Commissioner Rebecca Kelly Slaughter, whom Trump fired in March 2025. A lower court had ruled her firing unlawful in July 2025. The Supreme Court reversed that decision. Chief Justice John Roberts wrote that "the President may remove his subordinates at will," per NPR. Agencies like the NLRB, MSPB, and CPSC now lose the same protection.
Lisa Cook Stays, But the Fed's Safety Net Is Fragile
Trump tried to fire Cook in August 2025, citing unproven mortgage fraud claims shared on social media. A federal judge blocked that move in September 2025. The Supreme Court upheld that block in a 5-4 vote — Roberts joined the four liberal justices. Cook's term runs until 2038 and was designed to overlap multiple presidencies to keep monetary policy stable, according to The Washington Post.
But the margin is razor-thin. Legal analysts at Axios noted Trump could still fire Cook if he provides proper notice, a hearing, and proves genuine legal cause. Justice Amy Coney Barrett dissented, writing the stay causes "significant interference with the President's removal authority." One justice's departure could flip the outcome and put interest-rate decisions under White House control.
What This Means for Every Future President
The Slaughter ruling does not just help Trump. Every future president can now replace agency leaders the moment they take office. That means the FTC, NLRB, and other regulators could flip priorities with each election cycle. Liberal justices warned in dissent that the ruling puts dozens of agencies "firmly in control" of the White House, ending their roles as independent checks, according to The Guardian.
Markets reacted calmly to the Cook stay, reading it as a short-term defense of Fed independence. But the broader expansion of presidential power over regulatory agencies creates real uncertainty for corporate oversight, according to Bloomberg. The Federal Reserve now stands as nearly the last independent institution — protected for now by a single vote.
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