Market Volatility Concerns Rise Amid Unverified Rumors of Fed Chair Powell’s Exit

Unsubstantiated rumors about Federal Reserve Chair Jerome Powell stepping down spread across social media platform X on June 1, 2025, sparking concerns over potential market turbulence. The posts suggested an imminent interest rate cut, though no official confirmation has been provided. Analysts widely dismissed the claims, citing constitutional protections for the Fed chair and a lack of institutional backing.

Polymarket traders reflected this skepticism, with odds of Powell’s removal in 2025 holding steady at 14%. The prediction market’s stability underscores the low credibility assigned to the rumor. Meanwhile, a recent meeting between Powell and former President TRUMP at the White House fueled speculation, though the Fed reaffirmed its data-dependent policy stance.

Market participants remain wary. A sudden leadership change at the Fed could erode confidence in the dollar and trigger significant sell-offs. "Trust in the U.S. economy would decrease instantly," noted one analyst, recalling past volatility during political uncertainty. The WHITE House confirmed Trump advocated for rate cuts, but the Fed’s independence appears intact—for now.