An Upcoming Supreme Court Case Could Give Trump Standing To Make Good on His Threat To Oust Fed Chairman | The New York Sun

Key Supreme Court Case

The article centers on the Supreme Court case Trump v. Wilcox, focusing on whether the president can fire the heads of independent agencies without cause. The outcome could significantly affect President Trump’s ability to remove Federal Reserve Chairman Jerome Powell.

Presidential Power of Removal

The case challenges the Humphrey’s Executor precedent, which restricts presidential removal of independent agency heads to specific grounds. A ruling against Humphrey’s Executor could grant the president broader removal powers.

Powell's Response and Economic Concerns

Chairman Powell expressed skepticism that Trump v. Wilcox would apply to the Federal Reserve, highlighting the importance of the Fed's independence. He warned about potential economic consequences of tariffs, predicting stagflation.

Trump's Stance and Potential Market Instability

Despite previous statements, President Trump has reiterated his desire to remove Powell, prompting concerns about market instability. Treasury Secretary Scott Bessent reportedly cautions against such a move.

• Trump's recent public statements contradict his 2024 comments where he indicated Powell would serve his term.
• Bessent plans to start searching for Powell's successor in six months, but Trump's intentions remain uncertain.