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Jerome Powell resigning after latest FOMC cuts? Here's the truth
False claims that Fed Chair Jerome Powell has resigned are viral, but no official reports or statements support this; Powell has not announced his resignation.
Amid the Donald Trump administration's continued pressure on United States Federal Reserve Chair Jerome Powell to resign, a claim that Powell has already announced his resignation is going viral on social media. Hundreds of posts have been made claiming that Jerome Powell has decided to resign as Chairman of the Fed amid the latest round of FOMC cuts. However, the claims are straightaway false, as neither reports nor any public announcement made by Powell have given any indication of a possible resignation.
The US Federal Reserve has mostly held a target range of 4.25% to 4.5% through the year, with experts anticipating a rate cut by 25 bps by December 2025. However, in the June 17018 meeting, the minutes of the Fed meeting signaled that the Fed could cut rates in September, three months earlier than expected.
On July 7, a report on Goldman Sachs predicted that the rate cuts are likely in September, with the impact of tariffs not as significant as previously forecasted, and the job market easing. The report said that the chances of a 25-bps rate cut in September are “somewhat above” 50%.
Meanwhile, President Trump has continued his pressure on the Fed Chair Powell's resignation from before becoming the 47th POTUS in January 2025. As recently as Monday, July 8, Trump, in a Truth Social post, again called for Powell's resignation. The rumors around Powell resigning gained traction after that, with many saying that Powell has caved under Trump's pressure.
Here are some of the posts:
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Trump Supports Probe Into Powell
Trump doubled down on his demand for Fed Chair Jerome Powell's resignation by declaring his support for a congressional probe into whether Powell misled Congress about a $2.5 billion renovation of the Federal Reserve’s Washington, DC headquarters. covering up improper payments and misleading testimony. Trump called Powell “terrible” and said he should resign if wrongdoing is found. In another post on Truth Social, Trump called Powell "Too Late," taking a dig at his refusal to cut interest rates, as per Trump's demands.
