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Concerns Arise Over FTC Stability After Commissioner’s Ouster

In a surprising move, President Donald Trump dismissed one of the two Democratic commissioners at the Federal Trade Commission (FTC) on Tuesday. This decision has raised alarms about the stability of markets and the FTC’s role in maintaining fair business practices.

Rebecca Kelly Slaughter, the former commissioner, expressed her concerns on CNBC’s “Squawk on the Street” the following day, emphasizing that her dismissal transcends personal ramifications. “This isn’t just about the FTC, and it’s not about my job,” Slaughter stated. She underscored the importance of the FTC’s mandate to monitor market integrity, stating, “This is about policing the ability of the FTC to police markets and ensure honest businesses are protected.” She voiced apprehension that allowing dishonest businesses to prosper could destabilize the market.

Slaughter articulated that the implications of Trump’s actions extend beyond the FTC to the broader governmental structures that uphold market stability. “So, the markets that depend on the stability provided by government institutions should be very concerned,” she remarked, particularly amid a climate of stock market volatility and uncertainty surrounding federal policy directions.

Her comments occurred just ahead of the Federal Reserve’s anticipated announcement regarding interest rates, which further elevates the stakes in terms of economic stability. In a pointed remark about governmental accountability, Slaughter quipped, “If I can be fired, I don’t know why Jerome Powell can’t be fired,” referring to the Fed chairman.

The dismissal of Slaughter and Alvaro Bedoya, the other Democratic commissioner, has now left the FTC with only two Republican commissioners responsible for enforcing essential antitrust and consumer protection laws. Both commissioners argued that Trump’s actions contravened a long-standing federal law stipulating that commissioners may only be removed for legitimate reasons, such as neglect or misconduct. Slaughter reminded viewers of a Supreme Court ruling from 1935 that upheld this legislative framework, noting it has remained unchallenged for nearly nine decades.

In contrast, Andrew Ferguson, nominated by Trump to lead the FTC, defended the president’s authority. “I have no doubts about his constitutional authority to remove Commissioners, which is necessary to ensure democratic accountability for our government,” Ferguson asserted in a statement following the firings.

When pressed about the timing of the dismissals, White House press secretary Karoline Leavitt maintained that the decision was timely, asserting, “The President absolutely has the authority to do it.” She elaborated that “they were given ample notice in a letter,” and when questioned about the possibility of overturning the 1935 precedent, she stated, “The goal was to let these individuals go. If we have to fight it all the way to the Supreme Court, we certainly will.”

Both Slaughter and Bedoya labeled their terminations as “illegal,” with Bedoya condemning the act as an effort by Trump to manipulate the FTC to serve his interests, branding it as “corruption plain and simple.” He accused the former president of attempting to turn the FTC into “a lapdog for his golfing buddies.”

Since assuming office, Trump has been focused on restructuring the government by dismissing heads of independent agencies and implementing significant cuts, particularly through the DOGE initiative under the management of Elon Musk. Notably, on February 18, Trump enacted an executive order that expands his influence over independent regulatory bodies.

A report from Axios noted that Ferguson supported the principle that presidents possess the authority to dismiss heads of independent agencies without restriction. Meanwhile, federal judges recently ruled that Trump had unlawfully attempted to terminate two federal board members, a decision that the Trump administration is currently appealing.

Slaughter highlighted that her unexpected removal could inject uncertainty and confusion into ongoing FTC litigations. “The commission is in active litigation against all of the companies, pretty much, whose CEOs flanked the president at his inauguration,” she stated, indicating the potential ramifications of her dismissal on various legal processes.

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