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- Jerome Powell’s rumored resignation may trigger immediate policy action from the Trump administration.
- Analysts warn that a sudden Fed leadership change could shake investor confidence in U.S. economic stability.
- Market reactions remain mixed as crypto traders eye potential gains while traditional investors fear volatility.
Rumors are circulating that Federal Reserve Chair Jerome Powell may resign by Monday. Reports from the verified X account “The Bitcoin Therapist” claim that the Trump administration could reduce interest rates in case the resignation is imminent.
The post that spread online quickly stated that if the scenario unfolds, markets should expect a dramatic rise. While a couple of crypto freaks felt encouraged by his message, many others voiced worries about the outcomes.
Lana Queen, a well-known expert on financial subjects, firmly refused the statement. In her statement for X, she noted that Powell is unlikely to resign and said a stock market correction could occur if he did step down. She noted that a rapid switch of the Fed chair could reduce confidence in the strength of the U.S. dollar and its financial system.
Queen mentioned how similar remarks from Trump in the past instantly led to market drops when he threatened to fire Powell. She pointed out that a recurrence of such volatility could be more harmful now, given the current weakness in the global economy.
Market Uncertainty Grows Over Policy Risks and Fed Leadership Stability
Even though there is no official confirmation, the news has excited debate within the investing community. A few crypto traders believe that a decrease in interest rates could lead to a bullish trend. A number of traditional investors believe that taking away central bank independence could result in an adverse reaction.
There is concern that taking hasty monetary policy moves could pressure the Fed politically. According to analysts, swift shifts in Fed policy could throw off efforts to keep inflation under control and keep the economy steady.
Neither the Federal Reserve nor the White House has provided a statement regarding Powell’s role. With markets about to resume, observers are eagerly watching Washington for important hints about the issue.
Experts and investors in the financial market are paying close attention and preparing to react should the rumor be confirmed.
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