April 29, 2025​

The U.S. Supreme Court is deliberating a pivotal case that may redefine presidential authority over independent federal agencies, potentially affecting President Donald Trump’s capacity to dismiss Federal Reserve Chair Jerome Powell before his term concludes in 2026.​

The case centers on whether the president can remove members of the Federal Labor Relations Authority (FLRA) without cause. The outcome could set a precedent influencing the president’s power over other independent agencies, including the Federal Reserve. ​

Legal experts are closely monitoring the proceedings, noting that a decision favoring expanded presidential removal powers could erode the traditional independence of agencies like the Fed. Such a shift might allow the president to exert greater influence over monetary policy by threatening or executing the removal of key officials.​

Chair Powell, appointed by Trump in 2018, has faced criticism from the president over interest rate policies. While Trump has publicly expressed frustration, he has not taken formal steps to remove Powell, likely due to existing legal protections that require cause for dismissal.​

The Supreme Court’s decision, expected later this year, could have significant implications for the balance of power between the executive branch and independent federal agencies.​

Source: Reuters