Criminal investigation? Retail investors support "Daddy Powell," "the best chairman in history"

Federal Reserve Chairman Jerome Powell is facing the threat of a criminal investigation from the White House. In this struggle to defend the independence of the central bank, he has unexpectedly gained a powerful ally—the army of retail investors in "Meme stocks." This group venerates the 72-year-old central bank leader as the guardian of the historic bull market in U.S. stocks, not only worshipping him on social media but also viewing him as an "American hero" who dares to stand up against administrative pressure.

The catalyst for the event was a tough statement made by Powell on Sunday, accusing the Trump administration of using the threat of criminal prosecution to pressure the Federal Reserve into further interest rate cuts. This rare public confrontation quickly ignited the enthusiasm of retail investors, who, rather than panicking at the potential turmoil, expressed their strong support for Powell through their keyboards, with many believing he is protecting the economic system that has led to record highs in U.S. stocks.

On January 12, reports from the Wall Street Journal, Bloomberg, and other media indicated that on the Reddit forum WallStreetBets, known as a stronghold for retail investors, posts supporting Powell quickly became popular, garnering thousands of "likes" for the decision-maker. For these young investors who have grown alongside the historic highs of U.S. stocks, Powell is not only a "charismatic" technocrat but also, in their eyes, "the best chairman ever," with his steadfast stance in the face of pressure seen as a strong endorsement of market confidence.

Since Powell took office in 2018, the S&P 500 index has soared by 163%, a staggering return that has solidified his position in the hearts of individual investors. Although predictions have begun to bet on the likelihood of federal charges against him, this has not shaken retail investors' recognition of his "unyielding" image, with some even comparing him to a pop culture icon.

"Powell Daddy's" Loyal Fans

When Powell publicly defended the independence of the Federal Reserve, the WallStreetBets forum, which gained fame during the GameStop frenzy in 2021, erupted once again, but this time they united around one of Wall Street's most powerful figures.

On Monday, the most popular post on the forum was Powell's statement video.

A retail investor with the username 4Yk9gop posted: "He is an American hero; we don't deserve him." Another user, jonneh, emphasized with passionate profanity: "The GOAT (Greatest of All Time) in my heart never backs down."

This near-fanatical support is not limited to Reddit; on various social media platforms, young investors are praising Powell's calm demeanor and no-nonsense style For this group of internet-savvy traders, Powell is no longer just a central bank governor, but a pop culture symbol.

A large number of altered images and videos circulate online: in some scenes, Powell walks onto a music festival stage like a rock star; in others, he holds two handguns labeled "Dual" and "Mission."

This affection for "Daddy Powell" has even spawned related T-shirts, imitation accounts, and countless internet memes.

The "Aura" Created by the Bull Market

The admiration from retail investors is not without reason, but is based on solid market performance. Since Powell took office in February 2018, the S&P 500 index has risen by 163%.

When the COVID-19 pandemic threatened the economy, Powell decisively cut interest rates significantly, making the cost of financing trades in brokerage accounts extremely low. The combination of ultra-low interest rates, government stimulus plans, and the popularity of zero-commission trading ignited a new generation's interest in the market.

34-year-old investor and podcast host Zaid Admani was bombarded with news about Powell while on vacation. He praised him with the highest compliment from young people:

"He has an aura. He’s not here to play games; people can see that."

As a Fed chairman with a background as a lawyer and lacking formal economics training, Powell has guided U.S. monetary policy through the pandemic, soaring inflation, and last year's tariff turmoil.

He insists on holding press conferences after every policy meeting, which means his face has appeared on Americans' screens every six weeks for the past five years.

For the young traders flooding into the financial markets, every time a rate cut is announced, they create digital images of Powell dancing or throwing money to celebrate.

Even Suspected to be AI Deepfake

Powell's strong response to the federal investigation has shocked many investors accustomed to his mild demeanor.

In fact, the contrast is so stark that some investors initially suspected that the online video was generated by an imaginative AI program as "deepfake" content.

Doug Hurstell, a 48-year-old trader from Houston, stated:

"The Powell we’ve known over the past five years has been more cautious. I was surprised."

Zaid Admani also mentioned that while on vacation in Costa Rica on Sunday night, his group chat was buzzing with messages, and everyone was so engrossed that they couldn't pay attention to the weekend's football matches or the Golden Globe Awards; all attention was drawn to Powell. Admani lamented:

"Both sides have taken off the gloves and are ready to get serious."

Although investors like Hurstell sometimes disagree with Powell's policies, they still show respect for the decision-maker. Hurstell believes that Powell's work is largely unprecedented, "Is he perfect? No. But he’s doing a great job."

Betting on Fate and Historical Status

This attention on Powell has transformed into concrete monetary bets.

On prediction markets like Kalshi and Polymarket, users can not only bet on whether Powell will say his catchphrase "that's not our job" during the press conference, but they can now even wager on whether this Federal Reserve leader will face federal charges.

As of Monday evening, Polymarket users estimate the probability of him being charged by the end of June to be around 12%.

28-year-old trader Allen Tran, founder of the investment community HaiKhuu Trading, has a trading card of Powell on his desk, one of his few collectibles. Tran joked:

"He's watching me trade. Judging me, or congratulating me."

Despite facing unprecedented pressure, Powell's position seems unshakeable in the eyes of retail investors. WallStreetBets user PrestondeTipp wrote in a post:

"This guy... has perfectly threaded the needle. I bet he will go down in history as the best Federal Reserve chairman ever."