The U.S. Supreme Court has temporarily upheld President Donald Trump’s authority to dismiss two representatives of independent federal agencies. This decision may give the president the ability to change the leadership of the Federal Reserve System (Fed), which he has repeatedly criticized.
This is reported by Finway
Supreme Court Decision
On April 9, 2025, Judge John Roberts Jr. issued a temporary ruling regarding the dismissals of Kathy Harris and Gwynn Wilcox. Both women were appointed during Joe Biden’s administration, with their terms set to expire in 2027 and 2026, respectively.
According to federal law, these agencies are independent, and their employees can only be dismissed in cases of negligence or misconduct. However, Trump dismissed Harris and Wilcox shortly after taking office, leading to lawsuits from both women against the new administration.
Case Prospects
The cases of Harris and Wilcox have gone through lower courts, which overturned Trump’s decisions, but now the Supreme Court has the opportunity to review their situation. Judge Roberts Jr. issued an order that temporarily blocks the lower court rulings, giving the Supreme Court time to consider the case.
“This ruling effectively affirms the president’s authority to dismiss employees of independent agencies.”
Debates in a special session on this issue will take place in May, and a final decision could be reached as early as July. Attorneys for Harris and Wilcox are citing a 1935 precedent that limited the president’s authority regarding the dismissal of executive branch officials.
If Trump wins the case, he will have the ability to remove leaders such as Fed Chair Jerome Powell, which would significantly impact the policy and direction of the regulator in the future.