In the case of the Federal Reserve, Supreme Court appears to carve out a murky exception

Associated Press (AP)CenterEN 6 min read 100% complete by By CHRISTOPHER RUGABERJanuary 23, 2026 at 04:53 PM

AI Summary

long article 6 min

In January 2026, the Supreme Court heard arguments regarding the Federal Reserve's independence. While the court has previously allowed President Trump to remove heads of other independent agencies, it appears to be making an exception for the Fed. The court signaled it views the Federal Reserve differently, suggesting the president can only remove Fed governors "for cause," such as neglect of duty or malfeasance. This distinction was highlighted in a previous ruling where the court allowed the firing of officials from the National Labor Relations Board and the Merit Systems Protection Board, but differentiated the Fed due to its "uniquely structured, quasi-private entity" status. The case raises questions about the extent of presidential power over independent agencies.

Key Entities & Roles

Key Player Opposition Context

First Bank of the United States 40% Second Bank of the United States 40% Gwynne Wilcox 50% National Labor Relations Board 50% Cathy Harris 50% Merit Systems Protection Board 50% Abbe Lowell ×270% Washington ×270% Donald Trump ×280% Lisa Cook ×690% Supreme Court ×490% Federal Reserve ×9100%

Keywords

federal reserve 100% supreme court 90% independent agencies 70% president donald trump 60% removal power 60% governors 50% for cause 50% quasi-private entity 40%

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Neutral

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Associated Press (AP)

Political Lean

Center (0.00)

Far LeftCenterFar Right

Classification Confidence

90%

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Washington

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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federal reserve supreme court independent agencies president donald trump removal power governors for cause quasi-private entity

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