Summary

Prohibits members of the Federal Reserve Board, Federal Reserve bank presidents, and the first vice president of the Federal Reserve Bank of New York from simultaneously holding any other office, position, or employment for which they were appointed by the President, including holding such other positions while on leave; anyone holding one of these Fed roles who becomes ineligible is terminated on the date of enactment. The bill states Congress’s view that preserving the Federal Reserve’s independence from presidential political influence is essential and cites the Fed’s long, staggered terms as protective measures.

• Bars simultaneous service in certain Federal Reserve roles and any other office or employment to which the person was appointed by the President.
• Applies to Board governors, Federal Reserve bank presidents, and the first vice president of the New York Fed.
• Covers other presidential appointments even if the officeholder is on leave from that post.
• Incumbents who become ineligible because of the new rule are terminated on the date the law takes effect.
• Affirms Congress’s finding that Federal Reserve independence is fundamental and protected by long, staggered terms.
• Amends existing Federal Reserve-related statutes to add the prohibition but does not create new funding.
• Takes effect immediately on enactment with no transition period or exemption for current dual holders.
• Focuses on institutional independence rather than altering Fed policy-making authorities or duties.