Trump's Fed Overhaul Sparks Stagflation Fears and GOP Rifts

President Donald Trump has declared he has identified his choice to lead the Federal Reserve, though he has withheld the name while expressing frustration over resistance to removing current Chair Jerome Powell according to reports. Speaking to reporters in the Oval Office on Nov. 18, Trump said, "I'd love to get the guy currently in there out right now, but people are holding me back." Treasury Secretary Scott Bessent, overseeing the search, has narrowed candidates to Fed Governors Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, White House Economic Adviser Kevin Hassett, and BlackRock's Rick Rieder. Trump hinted at a preference for "the standard way" but has yet to commit to any individual according to reports. Powell's term as chair ends in May 2026, but his role as a Fed governor continues until 2028 according to analysis.

The Fed chair selection is occurring amid escalating tensions between Trump and key allies, notably Rep. Marjorie Taylor Greene (R-Ga). Greene, a former staunch Trump supporter, has accused the president of orchestrating threats against her and using "radical internet trolls" to intimidate her over her advocacy to release government-held files on financier Jeffrey Epstein. Trump, in turn, has withdrawn his endorsement of Greene and called her a "RINO" (Republican in Name Only), accusing her of betraying the party by pushing for the Epstein files' release. Greene, one of only four House Republicans to co-sign a discharge petition for the files, has framed the feud as a clash between transparency and political loyalty. She warned that Trump's "aggression" risks alienating women voters, a critical demographic for the GOP according to analysis.

The Fed and Epstein controversies intersect in Trump's broader push to reshape economic policy. He has repeatedly criticized Powell for delaying interest rate cuts, calling him "Jerome Too Late" and demanding a 3-percentage-point reduction. Critics warn that politicizing the Fed could trigger stagflation-a mix of high inflation and weak growth-as seen in the Bloomberg analysis modeling a 2028 election-year slump.

Meanwhile, the Epstein files dispute underscores fractures within the GOP, with Greene's defiance reflecting a growing rift between Trump's autocratic style and traditional party norms according to reports.