Sponsors (9)
The bill strengthens Fed independence, ethics, and public trust—potentially improving monetary stability and reducing systemic risk—at the cost of reduced democratic influence and increased recruitment and short‑term staffing challenges for government agencies.
Taxpayers, savers, and middle‑class households: Federal Reserve decision‑making would be more insulated from short‑term political pressure, supporting more stable monetary policy and potentially lower inflation volatility.
Taxpayers and the public: Reduces conflicts of interest and clarifies ethical standards by barring current government officials, Members of Congress, and dual officeholding, improving public trust in Fed decisions and financial supervision.
Depositors and the financial system: Stronger institutional integrity and clearer ethics can make Fed regulation more credible, helping protect depositors and reduce systemic risk to the economy.
Voters and taxpayers: Further insulating monetary policymakers reduces direct democratic accountability and makes it harder for elected officials (and therefore voters) to influence Fed policy.
Federal employees, agencies, and the financial sector: Restricting who can serve (and banning dual service) may shrink the pool of willing and eligible candidates, making recruitment harder and potentially raising compensation or search costs.
Federal agencies and taxpayers: Separation rules and bans on dual appointments could create procedural delays, force turnover in other agencies, and cause short‑term governance disruptions and additional hiring costs when vacancies occur.
Based on analysis of 3 sections of legislative text.
Bars Federal Reserve governors, Reserve Bank presidents/officers, and Reserve Bank directors from simultaneously holding other Presidential-appointed offices, including while on leave.
Prohibits members of the Federal Reserve Board of Governors, Federal Reserve Bank presidents and other presidentially appointed Reserve officers, and Federal Reserve Bank board directors from simultaneously holding any other office, position, or employment to which they were appointed by the President — including positions held on leave. The bill adds these prohibitions by amending existing U.S. Code provisions governing the Board of Governors, Reserve Bank officers, and Reserve Bank directors to prevent dual appointments and reduce potential conflicts of interest. The law is framed as protecting the Fed’s institutional independence and integrity by separating monetary policy and supervisory responsibilities from current government officials, Members of Congress, or other politically affiliated offices that could create undue influence or conflicts of interest.
Official title: Amend the Federal Reserve Act to prohibit dual appointments of employees of the Federal Reserve System, and for other purposes.
Introduced September 16, 2025 by Ruben Gallego · Last progress September 16, 2025