Supreme Court Rules Congress Cannot Insulate Federal Reserve Governor from Presidential Removal

The Supreme Court blocked an attempt to remove a Federal Reserve governor, sending the dispute back to lower courts for further review. The decision came after a June 29 ruling that gave the president authority to dismiss officials at most independent agencies. That 6-3 decision overturned a 1935 precedent and upheld the removal of a Federal Trade Commission member.

Background on the FTC Case President Trump fired two Democratic members of the Federal Trade Commission in March 2025. One member challenged the removal in court. The justices ruled that limits Congress placed on presidential removal power encroached on executive authority. The Federal Trade Commission enforces antitrust and consumer protection laws. The decision followed ideological lines.

The ruling will likely keep in place the May 2025 firings of three Democratic commissioners at the Consumer Product Safety Commission. Consumer advocates said the decision removes safeguards at agencies that police fraud and dangerous products.

“Today's decision does more than undermine one agency. It completely reshapes our government, and that includes the Consumer Product Safety Commission, the watchdog that guards against dangerous products that injure and kill." — Courtney Griffin, director of consumer product safety at the Consumer Federation of America A White House press secretary previously stated the president has the right to fire people within the executive branch. Consumer advocates warned the change turns independent agencies into political entities. Others called the decision a victory for constitutional separation of powers.”