Trump’s Federal Reserve Shakeup Raises Concerns Over Stagflation and Divides Within GOP

President Donald Trump has announced that he has selected his preferred candidate to head the Federal Reserve, but has not revealed the individual's identity, voicing irritation at the obstacles he faces in replacing current Chair Jerome Powell

. During a conversation with journalists in the Oval Office on November 18, Trump remarked, "I'd like to remove the person in charge right now, but others are preventing me." Treasury Secretary Scott Bessent, who is leading the appointment process, has Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, White House Economic Adviser Kevin Hassett, and Rick Rieder from BlackRock. Trump suggested he leans toward "the usual approach," but has not officially endorsed anyone . Powell's tenure as chair concludes in May 2026, though he will remain a Fed governor until 2028 .

The process of choosing the next Fed chair is unfolding amid intensifying disputes between Trump and prominent allies, especially Rep. Marjorie Taylor Greene (R-Ga). Once a loyal Trump backer, Greene has

against her and has used "extremist online trolls" to pressure her because of her efforts to make government records on financier Jeffrey Epstein public. In response, Trump has and labeled her a "RINO" (Republican in Name Only), accusing her of undermining the party by advocating for the Epstein files' disclosure. Greene, among just four House Republicans to sign a petition to release the files, has between openness and party loyalty. She cautioned that Trump's "hostility" could drive away women voters, a key group for Republican success .

The controversies surrounding the Fed and Epstein are converging as Trump seeks to overhaul economic policy. He has

, dubbing him "Jerome Too Late" and calling for a three-point rate reduction. Some warn that —a combination of surging inflation and sluggish growth—as projected in a Bloomberg analysis that foresees a downturn in the 2028 election year.

At the same time, the dispute over the Epstein documents highlights internal divisions within the GOP, with Greene's resistance signaling a widening gap between Trump's authoritative approach and the party's traditional values

.