The US Supreme Court appeared likely to back President Donald Trump’s effort to fire a leader of the Federal Trade Commission, a ruling that would overturn 90 years of precedent and threaten to further erode the independence of the Federal Reserve.
The conservative-majority court is grappling with whether Trump can dismiss the leaders of independent government agencies over political or policy differences.
A ruling is not expected until June, but investors are anxiously waiting to see if Trump would then win the power to fire the Fed chair: Though the central bank’s current leader is on his way out anyway, such an expansion of executive power would risk a longstanding US reputation for technocratic monetary policy.