Trump’s Judicial Play Puts Jerome Powell’s Tenure on Thin Ice
Economics
Jamie Redman
Targeting the Fed: Trump’s Judicial Play Puts Jerome Powell’s Tenure on Thin Ice
As detailed in a Bloomberg report, President Donald Trump has petitioned the Supreme Court to authorize the dismissal of senior figures within two autonomous federal agencies. The report posits that such a move might carve a legal pathway for Trump to oust Federal Reserve Chair Jerome Powell, challenging long-standing norms insulating the central bank from executive interference.
Targeting the Fed: Trump’s Judicial Play Puts Jerome Powell’s Tenure on Thin Ice
Executive Power Showdown: Supreme Court Petition Could Pave a Path to Oust Top Officials
The Trump administration has lodged an urgent appeal with the Supreme Court, seeking authorization to terminate employees at two designated federal agencies. This legal maneuver aims to dismantle the 1935 precedent set in Humphrey’s Executor v. United States, which affirmed Congress’s authority to insulate select senior officials within independent bodies from arbitrary presidential dismissal.
This decades-old judicial edict has preserved a measure of operational autonomy for such agencies, shielding them from overt executive influence. Trump’s legal cadre asserts these limitations on dismissal powers contravene Article II of the Constitution, which vests executive prerogatives in the presidency. They maintain that agencies exercising substantial administrative clout must operate under unfettered presidential supervision.
Bloomberg observes the case could “ultimately could test whether Trump has the power to fire Federal Reserve Chair Jerome Powell.” Existing doctrine fortifies leaders of independent entities—including the Fed—against removal absent substantive justification. Powell’s role, however, enjoys additional bulwarks under the Federal Reserve Act, mandating “good cause” for termination.
Scrapping Humphrey’s Executor might destabilize these safeguards, expanding presidential dominion over institutions like the Fed and imperiling their impartiality. The gambit coincides with legislative efforts to dissolve the central bank entirely and aligns with Project 2025’s vision to overhaul the U.S. monetary framework, eradicating its “monetary dysfunction.” Chapter 25, which dissects the Fed’s history, claims economic contractions have recurred quinquennially since its inception.
This development unfolds as Trump intensifies pressure on Powell to dramatically reduce the federal funds rate. Before suspending select tariffs Wednesday, Trump lambasted Powell’s purported sluggishness, demanding immediate rate cuts and depoliticized decision-making. Though the Fed convened privately days before Trump’s tariff pause, it remains steadfast on maintaining its policy rate, signaling no imminent retreat.
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