The Supreme Court on Monday signaled that it could soon clear the way for presidents to fire officials at independent regulatory agencies.
The 6-3 ruling let President Donald Trump’s removal of a Joe Biden-appointed Federal Trade Commission member stand until the justices rule on her case in December.
If the court overturns the underlying 90-year-old precedent that governs the decision, known as Humphrey’s Executor, it would have far-reaching effects on the US government — chiefly the Federal Reserve, which the administration has attempted to sway amid Trump’s campaign for lower interest rates.
Earlier this year, justices sought to exempt the central bank’s monetary policy from a related temporary order, but that ruling left experts uncertain how the high court would ultimately rule.
Fed Governor Lisa Cook has since leaned heavily on Humphrey’s as she contests Trump’s attempt to remove her over allegations of mortgage fraud.