Recently, a rumor about Federal Reserve Chair Powell's imminent resignation quietly circulated on social media platforms, sparking widespread market attention and speculation. According to market reports on December 1, unverified "small essays" from overseas markets claimed that Powell might announce his resignation during an emergency meeting scheduled for 7:00 PM Eastern Time on Monday. However, as of now, the rumor remains confined to certain social media channels, with no follow-up reports from mainstream media or confirmation from official Federal Reserve or other authoritative sources, casting doubt on its authenticity.
This sudden news emerged at a sensitive time, as the Federal Reserve is approaching a critical schedule. According to the publicly released agenda, Fed Chair Powell is scheduled to deliver a speech at a commemorative event at 9:00 AM on Tuesday. Although the specific topic of the speech has not yet been disclosed, market participants widely expect his remarks to have a significant impact on monetary policy direction and market sentiment. Interestingly, just before Powell's speech, former U.S. President Trump publicly stated this morning, "I know who I want to appoint as Fed Chair, and I will announce it soon." This statement has undoubtedly added more uncertainty to the market and further heated up discussions about potential leadership changes at the Federal Reserve.
In the current discourse, Kevin Hassett, Director of the White House National Economic Council, is seen as a top candidate to succeed Powell. However, Hassett has been cautious in responding to these rumors and has not directly addressed whether he will compete for the position of Fed Chair. During an appearance on CBS's "Face the Nation" last Sunday, he declined to comment on the speculation, merely referring to Bloomberg's earlier report about him being a "frontrunner" for the Fed Chair position as a "rumor," indicating his reserved stance on this sensitive topic.
From a market perspective, although the rumor of Powell's resignation has not been confirmed, its potential impact has already alerted some investors. As the institution responsible for formulating U.S. monetary policy, any changes in the Federal Reserve's leadership could have far-reaching effects on global financial markets, especially in the current complex environment of uneven economic recovery and persistent inflationary pressures. If Powell were to step down, it could not only alter market expectations regarding the continuity of Fed policies but also impact the U.S. dollar exchange rate, asset prices, and international capital flows.
Looking back at history, similar rumors about high-level personnel changes have often triggered market volatility even before being confirmed. For example, in recent years, news about changes in Federal Reserve officials has frequently impacted stock and bond markets in the short term. The reason this rumor has garnered significant attention is twofold: on one hand, Powell has played a key role in addressing the impact of the pandemic and guiding economic recovery, and his policy stance and communication style are familiar to investors; on the other hand, Trump, as a former president with significant political influence, has made statements about Fed personnel that easily lead to speculation about potential political influences on the central bank's independence in the future.
In summary, although the current rumors about Powell's resignation lack substantial evidence, the market anxiety and political uncertainty they reflect deserve ongoing attention. Until official information is released, investors should maintain a cautious stance, avoid overinterpreting unverified information, and closely monitor recent developments at the Federal Reserve and public statements from key figures to timely grasp potential changes in policy direction.
