Supreme Court backs Trump firing power, exempts Fed

The Supreme Court said it would allow President Donald Trump to remove certain federal officials, while carving out an exception for the Federal Reserve, in a decision that could reshape how independent agencies operate. Reaction pending.

Supreme Court shields Federal Reserve exception

Officials said the court reversed a decades-old precedent that had limited a president’s ability to fire heads of independent agencies. The decision effectively strengthens the White House’s control over parts of the federal bureaucracy by reducing job protections that previously insulated agency leadership from political removal.

Officials said the court’s exception for the Federal Reserve preserves the central bank’s institutional independence, a point closely watched by investors and global policymakers because the Fed sets US monetary policy and oversees parts of the banking system.

The ruling is likely to prompt near-term legal and administrative jockeying across Washington, including questions about which agencies qualify for removal protections and how quickly personnel changes could be executed. Officials did not immediately clarify how the decision will be applied across multi-member commissions versus single-director agencies.

The next operational test is expected within 30 days of June 30, 2026, as agencies and the administration set timelines for any removals and potential court challenges tied to specific positions.