Bond traders are boosting bets that the Federal Reserve will cut interest rates more aggressively next year, as speculation mounts that an eventual change of leadership at the central bank will deliver the easier monetary policy that President Donald Trump is demanding.

The Federal Reserve’s independence from political interference, viewed as sacrosanct inside the central bank, is under siege.

Mohamed El-Erian and Jeremy Siegel think Jerome Powell's resignation would ultimately bolster the independence of the central bank.

“Bessent is trying to show Trump there is a path to get what he wants without unnecessary market turmoil,” said Stephen Myrow, managing partner at Beacon Policy Advisors. That path would involve allowing Powell to finish out his term as chair and stepping down from the Federal Reserve board once his chairmanship is up.

A fake resignation letter generated by AI fooled Utah Senator Mike Lee into thinking that Jerome Powell, chair of the Federal Reserve, had quit on Tuesday. The senator tweeted and deleted the fake letter from his personal “basedmikelee” account, which staffers have confirmed that Lee operates directly.

The Federal Reserve held a first-of-its-kind conference Tuesday to meet the banks they help regulate. The event was the creation of the Fed’s new top regulatory official, Michelle Bowman, and her stated goal is more transparency.

On July 29-30, the Federal Open Market Committee will announce its interest rate policy. Read about the rumors that Fed Chair Powell will not likely address.

President Trump and his top aides have criticized Jerome H. Powell, the Fed chair, for his management of both the economy and a $2.5 billion revamp of the central bank’s headquarters.