Rumors Circulate on Powell's 2025 Resignation Amid Market Uncertainty

Rumors have been circulating on the internet suggesting that Federal Reserve Chairman Jerome Powell is set to resign on June 1, 2025. These rumors have sparked speculation about potential rate cuts and the future direction of monetary policy. The speculation gained traction after an internal memo from Powell to staff on Friday, which mentioned a voluntary deferred resignation program. However, it is important to note that there has been no official confirmation from the Federal Reserve regarding Powell's resignation.

Some experts believe that the financial markets would see a massive crash if Powell were to resign. This is because a sudden loss of leadership at the Federal Reserve would damage confidence in both the U.S. dollar and the broader economy. The market’s negative reaction when President Trump had just expressed a desire to remove Powell is a clear indication of this potential impact.

Despite the rumors, there has been no official word from the Federal Reserve confirming Powell's resignation. According to an internal memo, Powell mentioned a voluntary deferred resignation program, but this does not necessarily indicate that he is planning to step down immediately. The memo was sent to staff on Friday and did not provide any specific details about the program or its implementation.

The speculation about Powell's resignation comes at a time when the Federal Reserve is facing increasing pressure from various quarters. President Trump has been vocal about his desire to remove Powell from his position, citing disagreements over monetary policy. However, removing Powell would require a significant political process and could have unpredictable consequences for financial markets.

Powell is scheduled to deliver a speech on June 1, 2025, at 1 PM Eastern Time, which could provide further clarity on the situation. In light of the rumors, it is important to approach the situation with caution. While the speculation has generated a lot of interest, it is crucial to wait for official confirmation from the Federal Reserve before drawing any conclusions. Powell's speech on June 1, 2025, could provide valuable insights into the current state of monetary policy and the future direction of the Federal Reserve. Until then, it is advisable to remain vigilant and stay informed about any developments in the situation.

Many users have dismissed these claims as baseless, as there is no official evidence to back them. Polymarket betters are also not buying the Powell resignation rumors. Despite the discussion on X, the odds on the Polymarket contract “Will Trump remove Jerome Powell in 2025?” held steady at 12%.

Just recently, Trump summoned Powell to the White House and criticized him for not cutting the interest rates. But Powell was firm on his decision, saying that the policy decisions will be based on economic data and not politics. The Fed has held rates steady at 4.25% to 4.50% for a third straight meeting. Although Trump continues to push for rate cuts, in a recent interview, he said he has no plans to fire Powell, noting he’ll be able to replace him soon anyway, saying, “it’s in a very short period of time.”