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Tag: federal-reserve

Supreme Court Overturns Humphrey's Executor, Expands Presidential Removal Power While Sparing the Fed (June 2026)

On June 29, 2026, the U.S. Supreme Court overturned the 91-year-old precedent Humphrey's Executor v. United States, ruling 6-3 in Trump v. Slaughter that President Trump's 2025 at-will firing of Democratic FTC Commissioner Rebecca Kelly Slaughter was lawful. Chief Justice John Roberts, writing for the conservative majority, held that officials exercising executive power must remain removable by the President, effectively ending Congress's ability to shield independent-agency commissioners from at-will removal. In a separate 5-4 decision in Trump v. Cook, the Court held that Federal Reserve Governor Lisa Cook could remain in her post for now, carving out the central bank as a constitutionally distinct institution. Trump celebrated the FTC ruling as a historic expansion of presidential power, while Democrats and the affected officials warned it threatens the independence of watchdog agencies. Justice Sonia Sotomayor read a summary of her dissent from the bench, a rare signal of strong disagreement.

scotus
executive-power
federal-reserve
7 statements

Senate Confirms Kevin Warsh as Fed Chair in Closest Vote in Modern Era

The Senate confirmed Kevin Warsh as Chairman of the Federal Reserve on May 13, 2026, in a 54-45 vote — the narrowest margin for a Fed chair in the modern era of Senate confirmations (since 1977). Warsh replaces Jerome Powell, whose term expires May 15. The confirmation came in two steps: the Senate first confirmed Warsh as a Fed Board Governor (51-45) on May 12, then as Chairman (54-45) on May 13. Sen. John Fetterman (D-PA) was the only Democrat to cross the aisle in both votes; Sen. Chris Coons (D-DE) voted yes on the governor confirmation but not the chair vote. President Trump has repeatedly pressured the Fed to lower interest rates and once declared that "anybody that disagrees with me will never be the Fed Chairman." Democrats warned the confirmation would give Trump effective control over the central bank. Warsh pledged at his April 2026 hearing to be "an independent actor" and said the president never asked him to commit to any specific rate decision.

federal-reserve
monetary-policy
senate-confirmation
3 statements