H.R. 5499: Fed Integrity and Independence Act of 2025 (119th Congress) Bill Summary

This bill, known as the Fed Integrity and Independence Act of 2025, aims to enhance the independence of the Federal Reserve System by prohibiting dual appointments for certain key positions within the organization. The main points of the bill are as follows:

Short Title

The Act may be referred to as the "Fed Integrity and Independence Act of 2025."

Findings and Sense of Congress

The independence of the Federal Reserve System is essential for its effective operation, free from political interference.
Congress established the Federal Reserve System to ensure that its monetary policy decisions focus on long-term goals, avoiding political pressures.
Members of the Board of Governors serve staggered 14-year terms, while the Chairman serves a four-year term to protect against political influence.
It's the sense of Congress that no employee appointed by the President should serve simultaneously on the Board of Governors of the Federal Reserve System.

Prohibition of Dual Appointment

The bill proposes amendments to the Federal Reserve Act with the following main changes:

Board of Governors

It will be clarified that members of the Board of Governors:

Cannot hold any other office or position for which they are appointed by the President, including any leave of absence from such roles.

Federal Reserve Bank Presidents

For presidents of Federal Reserve Banks and the first vice president of the Federal Reserve Bank of New York:

They are also prohibited from holding any other office or position appointed by the President, including during any leave of absence.

Rule of Application

Individuals currently serving as governors or presidents in these roles, who do not meet the new eligibility requirements, will be terminated from their positions upon the bill's enactment.

Impact on Federal Reserve System

The bill aims to strengthen the Federal Reserve's independence by ensuring that key positions are held without conflicts of interest that may arise from dual appointments. This could lead to decisions that are more insulated from political influence, aligning the Federal Reserve's operations with its long-term goals.