Utah Senator Mike Lee was duped by an AI-generated fake resignation letter purportedly from Federal Reserve Chair Jerome Powell, which he posted and then deleted from his personal Twitter account on Tuesday. The letter, which appeared to show Powell stepping down, was quickly debunked after a scan revealed misspellings in the Fed's official seal.
Lee, who operates the '@BasedMikeLee' account himself, told reporters he deleted the tweet 'out of an abundance of caution' after realising he had not seen the news elsewhere. The Fed itself gave no indication of Powell's resignation, and the chairman delivered remarks at the Fed's headquarters in Washington on Tuesday without mentioning any change in his role.
The fake letter also fooled conservative influencer Benny Johnson, who apologised after realising it was a hoax. The incident comes amid ongoing tensions between President Donald Trump and Powell over interest rates, with Trump threatening to fire the Fed chair earlier this year. However, the White House has denied considering Powell's dismissal.
Powell has repeatedly declined to lower interest rates in 2024, citing inflation risks from Trump's tariff agenda, a stance that has angered the president and some Republican lawmakers. Trump reiterated on Tuesday his belief that Powell lowered rates in 2024 to aid Kamala Harris's presidential campaign.
