Former FTC Commissioner Dismissed by Trump Warns Markets Should Be Alarmed by Her Firing

One of the two Democratic commissioners at the Federal Trade Commission, who was unexpectedly dismissed by President Donald Trump on Tuesday, cautioned that her removal could undermine market stability.

“This isn’t just about the FTC, and it’s not about my position,” former commissioner Rebecca Kelly Slaughter remarked on Wednesday during an appearance on CNBC’s “Squawk on the Street.”

“This is about the FTC’s ability to regulate markets and ensure that honest businesses are safeguarded, rather than permitting deceitful companies to thrive,” she stated.

“It extends beyond the FTC; it concerns all governmental structures that uphold market stability,” she added. “Therefore, markets that rely on the stability ensured by government institutions should be quite worried.”

Slaughter’s comments emerged during a tumultuous period in the stock market, as investors faced uncertainty regarding Trump’s policy decisions.

She made her remarks just before the Federal Reserve was set to announce its latest interest rate decision.

“If I can be dismissed, I don’t understand why Jerome Powell can’t be removed,” Slaughter said, referring to the Fed chair.

Both Slaughter and Alvaro Bedoya, the other Democratic FTC commissioner, were let go by Trump on Tuesday. The dismissals left the agency with only two Republican commissioners, responsible for enforcing antitrust and consumer protection laws.

The Democrats contended that Trump’s actions violated a federal statute stipulating that commissioners may only be removed for cause, such as neglect or misconduct in office.

On CNBC, Slaughter pointed out that the Supreme Court upheld that law back in 1935, establishing a precedent that “has remained unbroken for 90 years.”

However, Andrew Ferguson, Trump’s Republican nominee to succeed Lina Khan as FTC chair, asserted that the president had acted within his rights.

“I have no doubts regarding his constitutional authority to remove commissioners, which is essential for ensuring democratic accountability in our government,” Ferguson said in a statement on Tuesday.

When questioned about why Trump decided to fire the Democratic commissioners at this juncture, White House press secretary Karoline Leavitt stated, “Because the time was appropriate to let these individuals go, and the President absolutely has the authority to do so.”

“They were given ample notice in a letter that I believe your outlet reported on,” Leavitt added. When asked whether the administration’s intent was to challenge the 1935 precedent, Leavitt responded, “The goal was to release these individuals. If we have to contest it all the way to the Supreme Court, we certainly will.”

Despite this, the two removed commissioners labeled Trump’s actions as “illegal.”

“This is corruption, plain and simple,” Bedoya posted on X, accusing Trump of attempting to transform the FTC into “a lapdog for his golfing buddies.”

Since taking office, Trump has aimed to revamp the government by ousting heads of independent agencies and significantly downsizing departments through the DOGE initiative overseen by Elon Musk.

On February 18, Trump signed an executive order to enhance his control over independent regulatory agencies.

Four days prior, Axios reported that Ferguson supported the notion that presidents have the authority to remove independent agency leaders at their discretion.

Federal judges determined in early March that Trump improperly attempted to dismiss two federal board members. The Trump administration is appealing these rulings.

Slaughter cautioned on Wednesday that her “unprecedented” dismissal introduces doubt and confusion concerning multiple active FTC litigations.

“The commission is currently entangled in active litigation against nearly all the companies whose CEOs were present during the president’s inauguration,” she remarked.