A fake, AI-generated resignation letter claiming Federal Reserve Chair Jerome Powell had stepped down went viral on social media, fooling several prominent Republicans including Senator Mike Lee, who shared and then deleted the letter.
The hoax sparked confusion and briefly caused surges in cryptocurrency prices as rumors spread. The incident highlights the growing risks of AI-generated misinformation in politics and financial markets. Despite the viral letter, Jerome Powell has not resigned, and the Federal Reserve confirmed the letter was a forgery.
The episode underscores the vulnerability of public figures and markets to rapidly spreading digital disinformation.
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