This legislation, known as the "Fed Integrity and Independence Act of 2025," seeks to bolster the independence of the Federal Reserve System by preventing certain employees from holding dual appointments. Congress finds that the Federal Reserve's independence from political interference is fundamental to its effective operation, ensuring monetary policy decisions focus on long-run goals free from political pressures. The existing structure, with staggered 14-year terms for Governors, was designed to protect this crucial independence. Therefore, it is deemed inappropriate for any employee appointed by the President to also serve as a member of the Board of Governors, regardless of leave status. To achieve this, the bill amends the Federal Reserve Act to explicitly prohibit members of the Board of Governors from simultaneously holding any other office, position, or employment for which they are appointed by the President, including under a leave of absence. This prohibition is extended to presidents of Federal Reserve Banks and the First Vice President of the Federal Reserve Bank of New York. Furthermore, the Act includes a rule of application stating that any individual currently serving in these Federal Reserve roles who is also holding a Presidentially-appointed position will be terminated from their Federal Reserve position on the date of the Act's enactment, ensuring immediate compliance with the new restrictions.
Referred to the House Committee on Financial Services.
Finance and Financial Sector
Fed Integrity and Independence Act of 2025
USA119th CongressHR-5499| House
| Updated: 9/18/2025
This legislation, known as the "Fed Integrity and Independence Act of 2025," seeks to bolster the independence of the Federal Reserve System by preventing certain employees from holding dual appointments. Congress finds that the Federal Reserve's independence from political interference is fundamental to its effective operation, ensuring monetary policy decisions focus on long-run goals free from political pressures. The existing structure, with staggered 14-year terms for Governors, was designed to protect this crucial independence. Therefore, it is deemed inappropriate for any employee appointed by the President to also serve as a member of the Board of Governors, regardless of leave status. To achieve this, the bill amends the Federal Reserve Act to explicitly prohibit members of the Board of Governors from simultaneously holding any other office, position, or employment for which they are appointed by the President, including under a leave of absence. This prohibition is extended to presidents of Federal Reserve Banks and the First Vice President of the Federal Reserve Bank of New York. Furthermore, the Act includes a rule of application stating that any individual currently serving in these Federal Reserve roles who is also holding a Presidentially-appointed position will be terminated from their Federal Reserve position on the date of the Act's enactment, ensuring immediate compliance with the new restrictions.