New Fed Bill Bans Dual Presidential Appointments, Mandates Immediate Firing for Current Officials with Conflicts

The Fed Integrity and Independence Act of 2025 is a legislative move aimed squarely at reinforcing the firewall between the central bank and short-term political pressures. The core of this bill is simple: it prohibits top officials at the Federal Reserve from simultaneously holding any other job that requires a Presidential appointment, even if they are technically on leave from that other position. This applies to members of the Board of Governors, Presidents of the regional Federal Reserve Banks, and specifically the First Vice President of the New York Fed (SEC. 3).

The Independence Mandate: Why This Matters

Congress is pretty clear in its findings (SEC. 2): the Fed needs to be independent to function correctly. This is the whole reason why members of the Board of Governors are given long, staggered 14-year terms—to insulate them from the political cycle and ensure they focus on long-term economic stability, not just the next election. When the Fed sets interest rates, that decision affects everything from your mortgage rate to the cost of borrowing for a small business trying to expand. The idea here is that those decisions should be driven by economics, not political expediency.

No More Double-Dipping on Presidential Appointments

This bill tightens the eligibility rules for key Fed leadership. Previously, there might have been a gray area where a Governor could, say, take a leave of absence from a position in the Executive Branch (like a cabinet-level role or a high-ranking agency head) to serve on the Fed. Under this new Act, that is explicitly banned (SEC. 3). If you’re appointed by the President to one job, you can’t hold one of these specific Fed jobs at the same time. You have to pick one. For the busy professional, think of it like this: the bill is preventing a conflict of interest where a person might be making monetary policy decisions while also owing allegiance to the administration in their other role, which could muddy the waters on policy goals.

The Immediate Termination Clause: An Abrupt Change

Here’s the part that could cause immediate administrative turbulence: The bill includes a hard-stop clause for current officeholders. If anyone is currently serving as a Governor, a Federal Reserve Bank President, or the First Vice President of the New York Fed, and they are also holding a conflicting Presidential appointment, their service in the Fed position ends immediately on the date this Act becomes law (SEC. 3). They are terminated from the Fed role right away. While the intent is to clean up potential conflicts, this provision means the Fed could face sudden, unplanned vacancies in critical leadership roles. Removing experienced personnel abruptly—even if they are in a dual role—could create instability and disruption in the central bank’s operations, which is something everyone relies on to keep the economy running smoothly.