Trump defies the independence of the Fed with historical request to the Supreme Court

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By Berto R

  • Trump has struggled to put federal agencies under his control.

  • The way is paved for Trump to advance against the Fed Headquarters, in the hands of Jerome Powell.

The United States Supreme Court allowed President Donald Trump to temporarily dismissed the Democratic members of two federal labor joints. This decision suspends judicial orders that protected Cathy Harris, of the Merit Systems Protection Board, and Gwynne Wilcox, of the National Board of Labor Relations, of being fired before the end of their mandates.

The president of the court, John Roberts, acted on behalf of the Court, stopping the decisions of two federal judges of Washington. This measure, known as administrative suspension, grants the nine judges time to evaluate the government application to block those orders while the litigation progresses. Roberts gave Harris and Wilcox’s lawyers until April 15 to respond.

The Department of Justice argued before the Supreme Court that lower courts failures They generated an unsustainable situation. According to government lawyers, the president should not delegate his executive authority to leaders of agencies who disagree with their political objectives, not even for a day, much less for months of litigation.

This action is part of Trump’s efforts to control federal agenciestraditionally independent of the Executive. Its strategy includes mass layoffs, dismantling of agencies, designation of allies in key positions and removal of career officials.

The Decision of the Supreme Court marks a precedent that could extend beyond the jobs. This could pave the way for Trump to challenge the independence of the Federal Reserve (FED), directed by Jerome Powell.

The Fed, with a board of seven governors appointed by the president and confirmed by the Senate for 14 -year mandates, operates with autonomy. Powell, who presides over the Board until May 2026, He has declared that he will not resign or can be legally fired by the President. However, the Federal Reserve Law does not clearly specify the terms to remove its president, which generates uncertainty.

Trump and Powell have maintained public tensions for years. The president has criticized the monetary policies of the Fed, especially interest rates, which he considers harmful to his economic objectives.

Although dismissing Powell does not guarantee immediate changes in monetary policy – given that the Federal Open Market Committee, usually led by the president of the Fed, includes 12 members – Trump’s influence could alter its dynamic. If Powell was removed, the committee could keep it as a leader, preserving your control over rates.

A historical failure

In any case, the ruling of the Supreme Court is seen as historical in the US. Its potential to break a long -standing precedent and redefine presidential power on independent agencies distinguishes it, although its final impact will depend on how the case and its practical consequences evolve.

Republican voices, such as Senator Mike Lee de Utah, and figures such as Elon Musk, at the head of the Government Efficiency Department, have supported a greater intervention of the White House in the Fed. This position reinforces Trump’s vision to centralize government control.

The battle for labor meetings reflects a broader strategy. Trump has fired thousands of federal employees and restructured agencies to align them with their agenda. The Merit Board, for example, It has been a brake on the layoffs of workers during the trial period. His decision to return personnel directly challenges staff reduction policies.

The ongoing litigation will determine whether Harris and Wilcox’s layoffs are maintained. Meanwhile, the suspension of the Supreme Court strengthens Trump’s position. In the financial context, experts observe how this confrontation could influence markets such as Bitcoin (BTC), as reported by cryptoics.

This judicial decision comes at a critical moment. With Trump consolidating power after his return to office, Federal agencies face unprecedented pressure. The independence of the Fed, a pillar of the American economic system, could be the next objective.

Although the outcome remains uncertain, Wednesday’s failure establishes a turning point in the relationship between the Executive and the autonomous institutions. The next steps of the Supreme Court and the response of those affected They will define the scope of this reconfiguration of power in Washington.

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