In recent days, the global financial market has been buzzing with rumors that the Chairman of the Federal Reserve (Fed) – Mr. Jerome Powell – may be considering resignation. Although there has been no official confirmation, just this possibility is enough to spark excitement across stock exchanges and the cryptocurrency market.

Jerome Powell – The Symbol of "Hawkish" Policy

Since taking over as Chairman of the Fed in 2018, Mr. Jerome Powell has stood out as a tough leader, especially during a period when the Fed was forced to raise interest rates aggressively to control soaring inflation after the pandemic.

Under Powell's tenure, interest rates have continuously been raised to the highest levels in decades, significantly increasing borrowing costs, affecting sensitive sectors such as real estate, technology, and finance.

The possibility of Mr. Powell leaving his position not only marks a turning point in the leadership of the Fed but could also pave the way for a change in the much-anticipated monetary policy direction.

If Powell Resigns – What Will Change?

Once Mr. Powell leaves, the successor will face the challenging task of maintaining the goal of controlling inflation without harming the momentum of economic recovery.

Many analysts believe that the successor may have a "more dovish" view, meaning less inclination towards tightening monetary policy and a willingness to cut interest rates if economic conditions permit.

In this context, lowering interest rates would increase the ability to borrow, stimulating consumption and investment – core factors to promote economic growth.

Positive Market Reaction

The financial market has quickly reacted to rumors about the possibility of a leadership change at the Fed. Major stock indices in the U.S. recorded slight increases, reflecting expectations that a "new" Fed could conduct more flexible and supportive monetary policy for the market.

In particular, the cryptocurrency community appears extremely optimistic. In recent years, crypto has generally benefited strongly in low-interest-rate environments – where capital easily seeks out riskier assets. If the Fed does indeed loosen its policy, this could ignite a new "spring" for the crypto market that has been under pressure.

Optimistic Signals, But Caution is Needed

Although market sentiment is becoming positive, it is important to note that there has not yet been any official announcement from the White House or from Mr. Powell himself. All current reactions are still based on speculation.

And in monetary policy, any personnel change comes with thorough assessments of the continuity and stability of the financial system.

Nevertheless, the expectation of a "more moderate" policy cycle remains a strong catalyst, driving positive investment sentiment across many fronts – from stocks to cryptocurrencies.

Conclusion

The rumors about the possibility of Mr. Jerome Powell resigning may not have been confirmed, but it is clear that it has sparked significant expectations among investors about a shift in U.S. monetary policy. Although there are still many uncertainties, the prospect of a less "hawkish" Fed is making the market eagerly anticipate change – a change that could reshape the entire global financial landscape in the near future.