Summary

Prohibits members of the Federal Reserve Board of Governors and senior leaders of Reserve Banks from simultaneously holding any other office, position, or employment for which they were appointed by the President, including while on leave from that other position. Anyone who, on enactment, would become ineligible under this rule is removed from the Fed office immediately. The bill states Congress’s view that Fed independence from presidential political pressure is essential and amends existing law to prevent dual service that could create such conflicts, applying the ban to Governors, Reserve Bank presidents, and the first vice president of the New York Fed.

• Prohibits Federal Reserve Board governors and certain Reserve Bank leaders from holding any other office that is a Presidential appointment at the same time.
• The ban applies even if the individual is on leave from the other Presidential appointment.
• Applies to Board Governors, presidents of Federal Reserve Banks, and the New York Fed’s first vice president.
• Anyone who becomes ineligible under the new rule on the enactment date is removed from the Fed position immediately.
• Declares congressional findings emphasizing the importance of Fed independence from presidential political pressure.
• Will likely create immediate vacancies that require Presidential nominations and Senate confirmations.
• Does not create new funding, change tax law, or alter monetary policy authorities directly.
• May reduce potential conflicts of interest but could prompt legal challenges or short-term governance disruption.