In a surprising move, President Donald Trump fired both Democratic members of the Federal Trade Commission (FTC) on Tuesday. This decision has raised concerns about the independence of regulatory agencies, especially the Federal Reserve. Former officials have warned that this could set a troubling precedent.
The firings of Commissioners Alvaro Bedoya and Rebecca Kelly Slaughter have been described as “illegal” by the commissioners themselves. They argue that Trump’s actions violate a 1935 Supreme Court ruling that limits the president’s power to remove officials from independent regulatory bodies. Bedoya stated that Trump aims to turn the FTC into a “lapdog” for his allies.
The FTC typically has five commissioners serving seven-year terms, with no more than three from the same political party. Following the firings, only two Republican commissioners remain: Chair Andrew Ferguson and Commissioner Melissa Holyoak. A third commissioner, Mark Meador, nominated by Trump, is still awaiting Senate confirmation.
In a statement, Ferguson expressed his belief in Trump’s constitutional authority to remove commissioners, emphasizing the need for accountability in government. Meanwhile, White House assistant press secretary Taylor Rogers supported the president, asserting that he has the right to manage personnel within the executive branch.
The firings have sparked fears about the potential for further removals, particularly of Federal Reserve Chair Jerome Powell. Bedoya warned that if they could be dismissed without reason, it could pave the way for the president to also fire Powell. This concern echoes sentiments from other officials, including Lina Khan, who previously led the FTC under President Biden. She criticized the firings as an illegal attempt to undermine the agency’s independence.
As the situation unfolds, it remains uncertain whether Trump has plans to nominate replacements for Bedoya and Slaughter. Legal challenges are expected due to the unprecedented nature of these firings, which many see as a direct threat to the independence of regulatory agencies.