S. 2817: Fed Integrity and Independence Act of 2025

This bill, known as the "Fed Integrity and Independence Act of 2025," aims to make changes to the Federal Reserve Act to enhance the independence and integrity of the Federal Reserve System by prohibiting "dual appointments." This means that individuals who hold certain positions within the Federal Reserve will not be allowed to simultaneously hold another government office or position that they were appointed to by the President.

Key Provisions of the Bill

• Prohibition of Dual Appointments: The bill specifically prohibits members of the Board of Governors, Federal Reserve Bank presidents, vice presidents, officers, and employees from holding multiple government roles that they are appointed to by the President at the same time. This includes any position under a leave of absence.
• Strengthening Independence: The goal of this legislation is to reduce potential conflicts of interest and undue political influence within the Federal Reserve. By ensuring that Federal Reserve officials focus solely on their responsibilities without the distraction of other governmental roles, the bill aims to uphold the credibility of the institution.
• Sense of Congress: The bill expresses the belief that the Federal Reserve plays a vital role in maintaining economic stability, and that its effectiveness relies on operating independently from political pressures. It addresses the historical importance of avoiding political influences on monetary policy decisions.

Impact on the Federal Reserve System

By enacting these restrictions, the bill seeks to strengthen the Federal Reserve's ability to function without interference from elected officials or political agendas. The proponents of the bill suggest that separating the roles will help ensure that monetary policy decisions are made based purely on economic conditions rather than political considerations.

Implementation

If passed, the bill would amend specific sections of the Federal Reserve Act to enforce these dual appointment restrictions. This legislative change would apply to the Board of Governors as well as the leadership and employees of the Federal Reserve Banks.

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