September 18, 2025
Mr. Vargas introduced the following bill; which was referred to the Committee on Financial Services
To amend the Federal Reserve Act to prohibit dual appointments of certain employees of the Federal Reserve System, and for other purposes.
Section 1. Short title
This Act may be cited as the Fed Integrity and Independence Act of 2025
.
Sec. 2. Findings; sense of Congress
(a) Findings
Congress finds the following:
(1)
The independence of the Federal Reserve System from political interference from the President is fundamental to the effective operation of the central bank.
(2)
Congress structured the Federal Reserve System to ensure that its monetary policy decisions focus on achieving long-run goals and do not become subject to political pressures from the President that could lead to undesirable outcomes.
(3)
To protect this independence, Congress made it so members of the Board of Governors of the Federal Reserve System are appointed for staggered 14-year terms, and the Chairman of the Board of Governors is appointed for a four-year term.
(b) Sense of Congress
It is the sense of Congress that it is not appropriate for any employee appointed by the President—whether they are on leave or not—to serve as a member of the Board of Governors of the Federal Reserve System.
Sec. 3. Prohibition of Dual Appointment
(a) Board of Governors
The fourth sentence of the first undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 241) is amended by striking business of the Board and shall each receive
and inserting business of the Board, may not simultaneously hold any other office, position, or employment for which the member is appointed by the President, including under a leave of absence from such other office, position, or employment, and shall each receive
.
(b) Federal Reserve Bank Presidents; First Vice President of the Federal Reserve Bank of New York
The fifth subparagraph of the fourth undesignated paragraph of section 4 of the Federal Reserve Act (12 U.S.C. 341) is amended—
(1)
by inserting after the second sentence (relating to presidents of Federal reserve banks) the following: A president of the bank may not simultaneously hold any other office, position, or employment for which the president is appointed by the President, including under a leave of absence from such other office, position, or employment.
; and
(2)
by inserting after the third sentence (relating to first vice presidents of Federal reserve banks) the following: The first vice president of the Federal Reserve Bank of New York may not simultaneously hold any other office, position, or employment for which the first vice president is appointed by the President, including under a leave of absence from such other office, position, or employment.
.
(c) Rule of application
An individual serving as a governor of the Board of Governors of the Federal Reserve System, the president of a Federal reserve bank, or the first vice president of the Federal Reserve Bank of New York on the date of enactment of this Act and who is ineligible to serve in such position due to the amendments made by this section are hereby terminated from such position on the date of enactment of this Act.