Overview
- On June 29 the Court in Trump v. Slaughter held that the president may remove most multimember independent‑agency commissioners at will, overruling the 1935 Humphrey’s Executor precedent.
- In a separate action the Court denied the government’s emergency stay in Trump v. Cook, leaving Federal Reserve Governor Lisa Cook in her seat while lower‑court proceedings over her attempted removal continue.
- The Slaughter ruling makes leadership at agencies such as the FTC, SEC, CFTC and NLRB more vulnerable to rapid turnover, which can drive quick shifts in enforcement priorities and rulemaking that affect businesses and investors.
- Legal observers warn the split decisions and narrow votes increase doctrinal uncertainty, with the D.C. Circuit and other courts expected to hear follow‑on litigation and Congress likely to consider statutory fixes.
- Because the Fed was treated differently, the decisions preserve central‑bank stability for now, but regulators, firms and workers should prepare for faster changes in many other agencies that could alter supervision, compliance and market rules.