Amid calls for Jerome Powell to leave his position as Fed Chair, a resignation letter is circulating on the internet in the cryptocurrency world. The letter, addressed to U.S. President Donald Trump, had all the appearances of legitimacy and included the signature of Federal Reserve Chair Jerome Powell.
U.S. Senator Mike Lee posted the letter in an X post titled 'Powell out' before deleting it minutes later. While the letter went viral in a matter of minutes, a close analysis reveals that the resignation was not from Jerome Powell.
To start, the unusual placement of the seal has generated controversy, as official letters contain a seal at the top. Other signs include a series of formatting issues and informal language that do not match Powell's correspondence. Furthermore, the absence of official confirmation from the Federal Reserve questions the letter's credibility.
Speculation about Powell's imminent resignation reached a frenzy in the hours leading up to the Fed Chair's speech today. Polymarket placed the probability of Powell being removed as Fed Chair at 21% after the fiasco of the fake resignation letter, while the head of the Federal Housing Finance Agency, William Pulte, believes the resignation is imminent.
The Federal Reserve Chair faces increasing political pressure to resign, and Trump has repeatedly urged Powell to step down. Trump has already begun searching for a replacement for Powell, tightening the screws on the Fed Chair for not cutting interest rates.
Powell's term as Federal Reserve Chair ends in May 2026, but there is increasing speculation that he could leave the position before his term ends. Meanwhile, Powell has been referred to the Department of Justice for lying under oath about the renewal of the Federal Reserve's headquarters.
