In a surprising turn of events, President Donald Trump dismissed two Democrat members of the Federal Trade Commission (FTC) on Tuesday.
This unexpected action has sparked concerns about the potential impact on the independence of the Federal Reserve, as per a former official's statement.
The President's decision to terminate FTC Commissioners Alvaro Bedoya and Rebecca Kelly Slaughter has sparked controversy, given the 1935 Supreme Court ruling that significantly restricts the president's power to dismiss officials from independent regulatory agencies such as the Federal Reserve and the FTC.
Both Bedoya and Slaughter have publicly denounced their dismissals as "illegal." Bedoya, in a statement, accused Trump of wanting the commission to serve the interests of his golfing companions, saying, "The president just illegally fired me. This is corruption plain and simple."
Slaughter echoed Bedoya's sentiments, warning in an interview with CNBC that Federal Reserve Chair Jerome Powell could also be at risk if her dismissal is upheld. Bedoya agreed, stating, "Commissioner Slaughter says what people havent realized yet: If she and I can be fired for no reason, the head of the Federal Reserve can be fired for no reason. You can like that or not like that, but this is where were headed if the president succeeds in firing us."
As reported by Breitbart, the FTC typically consists of five commissioners who serve seven-year terms, with a maximum of three members from the same party. The dismissals have left two Republicans, Chair Andrew Ferguson and Commissioner Melissa Holyoak, as the only remaining members. Mark Meador, nominated by Trump, is still awaiting Senate confirmation.
In response to his colleagues' dismissals, Ferguson issued a statement on Wednesday, reassuring the public of President Trump's executive authority and the FTC's ongoing commitment to consumer protection, price regulation, and anticompetitive behavior monitoring. He also expressed his gratitude to the dismissed commissioners for their service.
White House assistant press secretary Taylor Rogers defended the President's actions, stating that Trump "has the lawful authority to manage personnel within the executive branch." Rogers added that the President would continue to remove "bad actors" not aligned with his common-sense agenda, which the American people had decisively voted for.
A former FTC official warned that the dismissals could have "major implications for the independence of the Fed," suggesting that the timing of the action could be interpreted as a threat.
Jerome Powell, whom Trump nominated to lead the Fed during his first term, has reportedly been at odds with the President since assuming his role at the independent agency in 2018. Breitbart News economics editor John Carney argued in a November 2024 appearance on Fox Business that Trump has the legal authority to dismiss Powell, although he doubted that the President would take such action due to the potential for a protracted legal battle.
The future of the FTC remains uncertain, with no clear indication of whether President Trump has nominations ready to replace Bedoya and Slaughter. However, a legal battle seems likely in the wake of their unprecedented dismissals.
Slaughter argued that Trump's decision violated "the plain language of a statute and clear Supreme Court precedent," adding that the law serves the American people, not corporate power. Lina Khan, who led the FTC during the Biden administration until Trump took office in January, also labeled the President's action as "illegal," warning that it could embolden corporate lawbreakers at the expense of American consumers, workers, and honest businesses.
Login