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Odd Lots · Friday, July 17, 2026

Legal Scholars Debate Fed's 'Hamilton Exception' Amidst Broader Attacks on Agency Independence

Lev Menand and Nathan Tankus analyze the Supreme Court's decision to preserve the Federal Reserve's independence through a 'Hamilton exception,' distinguishing it from the FTC and other agencies. They argue that this carve-out, rooted in a contentious interpretation of history and tradition, highlights a broader judicial trend to dismantle the administrative state, potentially leaving the Fed as an isolated entity with questionable long-term security.

personAlexander HamiltonpersonLisa CookpersonClarence ThomascompanyFederal ReservecompanyFederal Trade CommissioncompanyFirst Bank of the United States

The tape

3 quotes
And so the Hamilton exception. We must do what Hamilton says. We must do what Hamilton says.
Lev Menand
The huge mistake that they're making, just a fundamental logical failure here, is that the First Bank of the United States, which is what Alexander Hamilton was advocating for was a investor owned commercial bank. It was not in any way abrogating the president's rights to remove executive officers.
Lev Menand
This is a known thing. Why not make an argument that no monetary policy is fiscal policy. Fiscal policy is Congress, and therefore it's just not like these other things.
Nathan Tankus
Heard on Odd Lots — “Lev Menand and Nathan Tankus on Why Fed Independence Is Now Hanging by a Thread, published Friday, July 17, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via publisher transcript · $0.00
Legal Scholars Debate Fed's 'Hamilton Exception' Amidst Broader Attacks on Agency Independence — Heardvine