Fake resignation letter stirs waves: Powell's "resignation" rumors shake the market, MAGA lawmakers believe it to be true

A "resignation letter" allegedly written by Federal Reserve Chairman Jerome Powell has circulated on the social media accounts of several prominent figures in the MAGA camp, attracting widespread attention.

Several users on Elon Musk's social media platform X posted claims that Federal Reserve Chairman Powell had resigned, effective immediately, mentioning the need for "new leadership" to protect the "integrity" of the Federal Reserve. Some users and media analysts have stated that this is fake news, and the images circulating on social media are AI-generated, containing obvious errors.

The emergence of this fake letter comes amid ongoing speculation about Powell's future. Following the news, Bitcoin saw a significant short-term surge, with an overall increase of 2.7%, returning above $120,000. The yield on the U.S. 10-year Treasury bond maintained a decline of over 4 basis points, while the yield on the 2-year Treasury bond also maintained a decline of over 3 basis points.

The so-called "resignation letter" to Trump was written in Powell's voice, claiming he would resign as Federal Reserve Chairman on July 22.

"I am proud of what we have achieved, however, at this critical moment, I believe new leadership is needed to continue the important work of the Federal Reserve and to strengthen public confidence in its independence and effectiveness."

"I remain confident in the resilience and strength of the U.S. economy, as well as the professionalism of the Fed staff. I am grateful to have served in this position and fully support my successor in continuing the critical mission of achieving maximum employment and price stability."

However, several media outlets, including MeidasTouch Network and Steel Nows, pointed out that the seal on the letter was generated in a very unorthodox manner, and there were even misspelled words.

Republican Senator Believes It to Be True, Then Quickly Deletes Post

After the fake resignation letter circulated on social media, Trump's staunch ally, Utah Senator Mike Lee, posted on social platform X on Tuesday, celebrating Powell's "resignation." Conservative influencer Benny Johnson also retweeted the letter. Both quickly deleted their related posts.

Lee wrote in his post: "Powell is out!" and added alarm emojis on either side of the text, along with a forged resignation letter from Powell.

After deleting the post, Lee told the media,

"(This letter) looked official, and I realized a few seconds after posting that there was no news about this letter anywhere else, so out of caution, I deleted it immediately. I don't know if this is true or not."

Mike Lee is known for often posting exaggerated content on his "@BasedMikeLee" account. Last July, he mistakenly believed a fake news report about former President Carter's death and retweeted it, but Carter did not actually pass away until December of that year.

Shortly after deleting his post, Benny Johnson stated on X:

"That resignation letter from Powell is fake, please do not forward it. I'm sorry, this is a bad operation. I still really hope Powell can resign."

Trump hints: Powell will serve until the end of his term

Powell was appointed as the Chairman of the Federal Reserve by Trump in 2017, and he has previously stated that he would not resign voluntarily even if the president asked him to.

Trump has been continuously criticizing Powell for months and has expressed dissatisfaction with the Federal Reserve's decision not to cut interest rates. Last week, Trump consulted a group of House Republicans at the White House, asking whether Powell should be fired. However, in recent days, he hinted that he might allow Powell to complete his term, which will end in May 2026.

When asked by the media on Tuesday whether Powell should resign, Trump stated:

"I think he's doing a terrible job, but he's going to be out soon. He'll be gone in eight months."

Meanwhile, senior officials at the White House are focusing on the $2.5 billion renovation project at the Federal Reserve's Washington headquarters and are beginning to scrutinize Powell more closely. These officials include Deputy Chief of Staff James Blair and Budget Director Russ Vought. They avoided discussing whether this scrutiny is paving the way for Powell's dismissal during interviews