Sponsors (9)
The bill strengthens Federal Reserve independence and governance by limiting dual roles and clarifying conflicts of interest—improving monetary stability and market confidence—at the cost of narrowing the candidate pool, reducing direct democratic accountability, and risking short-term operational disruption.
Taxpayers, savers, and borrowers — the Fed would be more insulated from short-term political pressure, increasing monetary stability and reducing the risk of politically driven interest-rate swings.
Financial institutions and investors — greater confidence in the Fed's impartial supervision and regulation could improve market functioning and reduce volatility.
Federal employees and governance — clearer conflict-of-interest rules would reduce instances of dual appointments and divided loyalties, strengthening ethical standards and decision-making at the Fed.
Federal employees, potential appointees, and some financial institutions — the pool of eligible candidates for Federal Reserve roles would shrink because members of Congress and certain executive officials would be barred, reducing available experience and diversity of backgrounds.
Taxpayers and the public — stronger formal insulation of the Fed could reduce direct democratic accountability by making monetary policymakers less answerable to elected officials.
Reserve Banks, board operations, and markets — enforcing separations may force turnover or create vacancies (if current dual-holders must resign one post), causing short-term disruption to Reserve Bank operations or supervision.
Based on analysis of 3 sections of legislative text.
Bars Board members, Reserve Bank presidents/officers, and Reserve Bank directors from simultaneously holding any other President-appointed office, position, or employment, including while on leave.
Introduced September 16, 2025 by Ruben Gallego · Last progress September 16, 2025
Prohibits members of the Board of Governors, presidents/vice presidents/officers/employees of Federal Reserve Banks, and Federal Reserve Bank directors from simultaneously holding any other office, position, or employment for which they were appointed by the President, including while on leave. It also states Congress's nonbinding view that the Federal Reserve must remain insulated from political influence and that the bill's purpose is to strengthen institutional independence and prevent conflicts of interest. The bill amends three existing Federal Reserve Act provisions to add a categorical ban on dual appointments; it does not provide new funding, deadlines, enforcement mechanisms, or emergency designations.