Federal Reserve Independence Act

S 957, the Federal Reserve Independence Act, changes how Federal Reserve Bank directors are selected and reduces conflicts of interest. It requires the Federal Reserve Board to appoint Class A and Class B directors (previously chosen by banks) and bans employees of regulated banks or the Fed itself from serving on Fed bank boards or owning stock in regulated companies. The bill directly affects Federal Reserve Bank directors, bank employees, and entities regulated by the Fed. It also mandates annual reports to Congress on compliance with these new rules.