Supreme Court's Upcoming Ruling On Trump’s Dismissals To Decide Fate Of Fed Chair Powell’s Job: Report - Target (NYSE:TGT), Walmart (NYSE:WMT)

Following President Donald Trump‘s dismissal of two federal labor board members, Federal Reserve Chair Jerome Powell is closely monitoring the situation, given its possible impact on his job security.

What Happened: The U.S. Supreme Court is set to rule on President Trump's attempt to fire two federal labor board members—Cathy Harris and Gwynne Wilcox—despite legal protections for their roles and it could set a precedent for the President’s authority over independent federal agencies, reported Reuters.

Both Harris and Wilcox, appointed by former President Joe Biden, had years remaining in their terms when they were dismissed.

The case challenges whether congressional safeguards limiting presidential firings infringe on constitutional executive powers.

The removal of Harris and Wilcox, part of a broader government overhaul, has sparked legal challenges. Two federal judges blocked the dismissals, citing a 1935 Supreme Court precedent. The upcoming Supreme Court decision could clarify whether Trump has the authority to fire Federal Reserve officials.

Legal experts opine that if the Supreme Court strikes down removal protections for the two labor boards, it might carve out an exception to maintain the Federal Reserve’s independence. A ruling could be issued at any time.

Start Futures Trading Fast — with a $200 Bonus

Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection.

Why It Matters: This situation comes amid a tense relationship between Trump and Powell. Trump, during his 100-day rally in Michigan, renewed attacks on Powell and claimed to have superior knowledge about interest rates than the Fed Chair.

Previously, Trump backed off from firing Powell after warnings from the CEOs of Walmart WMT and Target TGT about potential financial chaos.

Meanwhile, Economist Peter Schiff predicted that Trump would likely nominate a highly dovish replacement for Powell, one willing to “sacrifice the dollar and create as much inflation as needed” to keep interest rates low. Notably, Powell has remained steadfast in his stance on interest rates, despite Trump’s criticism.