Fact Check: "The US Supreme Court ruled on the removal of Federal Reserve board members in 1935."
What We Know
The claim refers to a ruling by the US Supreme Court regarding the removal of members of the Federal Reserve Board. In 1935, the Supreme Court did indeed address issues related to the removal of federal officials, particularly in the context of the Federal Trade Commission (FTC). The Court upheld the principle that members of the FTC could only be removed for cause, which established a precedent for similar protections for other federal officials, including those in the Federal Reserve System (source-2, source-3).
The Federal Reserve Act, which was enacted in 1913, stipulates that members of the Federal Reserve Board can only be removed by the President for cause. This provision was reinforced by the Supreme Court's ruling in 1935, which emphasized the importance of protecting the independence of regulatory agencies from political pressures (source-2).
Analysis
The claim that the Supreme Court ruled on the removal of Federal Reserve board members in 1935 is partially accurate but requires clarification. The 1935 ruling did not specifically address the Federal Reserve Board but rather the FTC. However, the implications of this ruling extended to the Federal Reserve, as it established the legal framework for the "for-cause" removal protections that apply to various federal officials, including those on the Federal Reserve Board (source-3, source-4).
The reliability of the sources varies. The Brookings Institution is a well-respected think tank that provides credible analyses of economic policies and institutions (source-2). In contrast, some news articles, while informative, may contain biases based on their editorial slants (source-4). Overall, the context provided by these sources supports the understanding that the 1935 ruling was significant for the legal framework surrounding the removal of federal officials.
Conclusion
Verdict: Unverified
While the Supreme Court did rule in 1935 on the removal of federal officials, the specific claim that it ruled on the removal of Federal Reserve board members is misleading. The ruling primarily concerned the FTC, but it did set a precedent that affects the Federal Reserve. Therefore, the claim lacks precise accuracy and context, leading to the conclusion that it is unverified.
