Former U.S. regulatory official warns: Fed’s independence still faces threats
Former U.S. Federal Trade Commission (FTC) Commissioner Rebecca Slaughter recently said that although the U.S. Supreme Court ruled in her dismissal case to protect Fed governors from the same fate, this exception "is not lasting" and the Fed's independence still faces serious threats. Slaughter was fired by President Trump without reason in March 2025, and she subsequently filed legal proceedings. The U.S. Supreme Court voted 6-3 in favor of the president's firing of Slaughter, giving the White House broader control over traditionally independent agencies and overturning an important precedent dating to 1935 (Humphrey Executor v. United States). But in another case, the Supreme Court ruled 5-4 in favor of Lisa Cook, a Fed governor who was also tried to be fired by Trump, drawing a line of protection for the Fed. Slaughter noted in an interview that the logic of the Supreme Court's ruling means "giving a special exception to Wall Street but not Main Street," which she believes is unlikely to last. She worries the ruling will lead to more dramatic swings in policy and practice than in the past century and create more room for political manipulation. She said Trump's signal of firing her was not just that he "didn't want Democrats," but that he "didn't want anyone who didn't do exactly what he wanted." Prior to the case, Trump had also put pressure on Federal Reserve Chairman Jay Powell for not cutting interest rates sooner. The Justice Department once launched a criminal investigation into Powell, but it was stopped by a judge on the grounds that "substantial evidence showed that the investigation constituted pressure." While the president has greater control over a once-protected agency, some argue that the different outcomes in Slaughter and Cook demonstrate the Supreme Court's self-restraint. Some lawyers believe the ruling shows the Supreme Court is more pragmatic than critics believe and is particularly wary of disrupting financial markets and the financial system. Slaughter herself said she remains committed to "mission-driven work" but will "definitely not" run for office. She believes her defeat will trigger a huge shift in the way government operates and is disappointing, but she believes she is "definitely on the right side of history" and calls the case "not the end of the discussion." Open a futures account on Sina's cooperative platform, safe, fast and guaranteed