U.S. President Donald Trump will likely face significant legal hurdles if he tries to remove senior officials from the Federal Trade Commission (FTC) and the Federal Reserve (Fed), according to a note published late Tuesday by TD Cowen analysts.

On Tuesday, Trump dismissed both Democratic commissioners of the FTC—Alvaro Bedoya and Rebecca Slaughter—sparking concerns over the independence of regulatory agencies under his administration.

These moves have led to speculation that Trump might similarly overhaul the Fed’s leadership, especially as he has intensified calls for the central bank to cut interest rates.

However, TD analysts argued that the Supreme Court would likely reverse Trump’s dismissals at the FTC, adding that even if it did not, the Fed enjoys constitutional protections against similar executive actions.

“The Fed’s monetary policy functions represent a delegation of legislative authority, rather than executive authority. In our view, this limits the president’s power to remove officials,” the TD analysts wrote.

Still, the analysts highlighted deeper concerns regarding the precedent Trump’s actions could set, warning that future administrations could exploit similar executive power to enact “sharp swings” in policy, creating uncertainty that discourages investment in the U.S. economy.

“Trump is taking this to new levels that, in our opinion, carry as much downside risk as upside potential in the long term,” TD analysts stated.

They noted that while previous administrations occasionally employed similar tactics to confirm their federal appointees, those efforts were generally more limited in scope.

Meanwhile, the Fed has signaled little intention of cutting interest rates in the near term, frustrating Trump, who seeks lower rates to stimulate U.S. economic growth.