The US Supreme Court on Monday upheld President Donald Trump’s right to remove the heads of most independent federal agencies, making a key exception for the Federal Reserve. This landmark decision, which significantly expands the powers of the President, is being seen as one of the most consequential decisions on executive authority in decades.The court allowed Federal Reserve Governor Lisa Cook to remain in her post while she challenges Trump’s attempt to fire her on mortgage fraud charges, which she has rejected. However, the ruling effectively gives presidents broad authority to remove the leaders of most independent federal agencies, overturning decades of legal precedent limiting executive power.Supreme Court overturned decades old precedentIn a decision supported by the court’s six conservative justices, the nine-member bench overturned its 91-year-old ruling in Humphrey’s Execution, which had restricted the president’s ability to remove members of independent agencies without cause.Chief Justice John Roberts wrote for the majority, “We hold that such protection from removal is contrary to the separation of powers enshrined in the Constitution.”The ruling came in the case of former Federal Trade Commission member Rebecca Slaughter, who was fired by Trump despite federal law requiring a valid reason for such dismissal.The decision is expected to affect several independent agencies, including the National Labor Relations Board, the Merit System Protection Board and the Consumer Product Safety Commission, where Trump has also removed officials, the Associated Press reports.Trump welcomed the decision in a post on Truth Social, writing: “It is an honor to be the sitting president who won this historic and unprecedented decision, one of the most significant decisions ever handed down regarding presidential powers.”Federal Reserve remains safeIn a separate 5-4 decision, the Supreme Court declined to immediately remove Federal Reserve Governor Lisa Cook from office until her legal challenge continues, the Associated Press reports.Chief Justice Roberts, joined by Justice Brett Kavanaugh and the court’s three liberal justices, said that allowing Cook’s removal would effectively eliminate statutory protections for Federal Reserve governors.“The President shall be authorized to remove a member of the Federal Reserve at any time, for any reason, without prior notice and without judicial inquiry. “This would turn causal protections into something more than employment at will,” Roberts wrote.Cook, who was appointed to the Federal Reserve Board by former President Joe Biden, will remain in the post while the case continues in court.Justice Sonia Sotomayor dissented from the bench, warning that the decision could have far-reaching consequences for American democracy.“Certainly, the President will emerge with more power than ever before. “This power was given to them by the six justices of this court, not by the people or the Constitution,” Sotomayor said, adding that the decision could lead to “submissiveness, instability and even oppression.”Trump-Fed confrontation intensifiesThe case involving Cook has attracted much attention due to Trump’s repeated criticism of the Federal Reserve and its interest rate policies.Trump also threatened to remove former Federal Reserve Chairman Jerome Powell after his term as chairman ended in May, although Powell remains on the Fed’s Board of Governors while Kevin Wersh takes over as chairman.Critics have argued that Trump’s effort to remove Cook was intended to gain greater influence over US monetary policy. If successful, Trump could appoint a replacement and secure a majority on the Federal Reserve’s governing board.Cook rejected allegations that his dismissal was related to mortgage paperwork discrepancies.“This was an attempt to remove me under a fabricated pretext because I refused to bow to political pressure and continued to set interest rates based solely on what would best serve the American people. This is the most basic responsibility of a Federal Reserve governor,” he said in a statement.The case against Cook stems from allegations that he listed properties in Michigan and Georgia as “primary residences” in mortgage applications he filed in 2021, before joining the Federal Reserve.U.S. Solicitor General D. John Sawyer argued that the applications reflected “gross negligence” and justified Trump’s decision to remove them. Cook has denied any wrongdoing and has not been charged with a crime.