Fed Integrity and Independence Act of 2025
This bill, the Fed Integrity and Independence Act of 2025, would tighten the separation between political appointments and leadership of the Federal Reserve System. It amends the Federal Reserve Act to prohibit any President-appointed official from simultaneously holding another office, position, or employment appointed by the President, including while on leave. The prohibition applies to: (1) members of the Board of Governors, (2) presidents of the regional Federal Reserve Banks, and (3) the first vice president of the Federal Reserve Bank of New York. The measure also provides that individuals already serving in these roles who would become ineligible under the amendments would be terminated on the date of enactment. The purpose is to protect the Fed’s perceived independence from political influence by ensuring its top leaders are not double-holding roles that could affect monetary policy decisions. Potential impact includes strengthening insulation from political pressure and reducing potential conflicts of interest, but it could limit leadership from taking on other presidential appointments or temporary roles and may create immediate staffing transitions for current leaders.
Key Points
- 1Short title: The Fed Integrity and Independence Act of 2025.
- 2Findings and sense of Congress: affirms that Fed independence from presidential political pressure is essential to monetary policy, and states it is inappropriate for any President-appointed employee to serve as a member of the Board of Governors (even while on leave).
- 3Prohibition for Board of Governors: amends 12 U.S.C. 241 so governors may not simultaneously hold any other office, position, or employment appointed by the President (including while on leave).
- 4Prohibition for Fed Bank Presidents and NY Fed First Vice President: amends 12 U.S.C. 341 so presidents of the Federal Reserve Banks and the First Vice President of the New York Fed may not hold any other President-appointed office or employment (including while on leave).
- 5Rule of Application: individuals serving in these roles on the enactment date who would be ineligible under the amendments would be terminated from office on that date.