HR5499-119

1. Short title This Act may be cited as the Fed Integrity and Independence Act of 2025.

2. Findings; sense of Congress Congress finds the following: The independence of the Federal Reserve System from political interference from the President is fundamental to the effective operation of the central bank. Congress structured the Federal Reserve System to ensure that its monetary policy decisions focus on achieving long-run goals and do not become subject to political pressures from the President that could lead to undesirable outcomes. To protect this independence, Congress made it so members of the Board of Governors of the Federal Reserve System are appointed for staggered 14-year terms, and the Chairman of the Board of Governors is appointed for a four-year term. It is the sense of Congress that it is not appropriate for any employee appointed by the President—whether they are on leave or not—to serve as a member of the Board of Governors of the Federal Reserve System.

3. Prohibition of Dual Appointment The fourth sentence of the first undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 241) is amended by striking business of the Board and shall each receive and inserting business of the Board, may not simultaneously hold any other office, position, or employment for which the member is appointed by the President, including under a leave of absence from such other office, position, or employment, and shall each receive. The fifth subparagraph of the fourth undesignated paragraph of section 4 of the Federal Reserve Act (12 U.S.C. 341) is amended— by inserting after the second sentence (relating to presidents of Federal reserve banks) the following: A president of the bank may not simultaneously hold any other office, position, or employment for which the president is appointed by the President, including under a leave of absence from such other office, position, or employment.; and by inserting after the third sentence (relating to first vice presidents of Federal reserve banks) the following: The first vice president of the Federal Reserve Bank of New York may not simultaneously hold any other office, position, or employment for which the first vice president is appointed by the President, including under a leave of absence from such other office, position, or employment.. An individual serving as a governor of the Board of Governors of the Federal Reserve System, the president of a Federal reserve bank, or the first vice president of the Federal Reserve Bank of New York on the date of enactment of this Act and who is ineligible to serve in such position due to the amendments made by this section are hereby terminated from such position on the date of enactment of this Act.