Wall Street veteran David Zervos has added his name to the list of potential Federal Reserve chairs who believe the central bank is past due in approving an interest rate reduction.
Zervos, chief market strategist at Jefferies, has consistently advocated for a half percentage point cut in the federal funds rate over the past three Fed meetings. During a CNBC interview, he reiterated his position, stating that central bankers should not be deterred by the recent producer price index showing pipeline inflation pressures hotter than expected.
Zervos believes that the Fed should move aggressively to ease rates now to prevent a labor market slowdown and create more jobs. He argues that monetary policy is currently too restrictive, citing a reasonable storyline suggesting this narrative.
The list of potential Fed chairs has expanded to nearly a dozen names, including current and past officials, economists, and one Trump administration advisor. Zervos joins Rick Rieder, BlackRock bond strategist, who also supports a half-point cut in rates. President Donald Trump has been pushing for the Fed to cut interest rates, advocating for significant reductions.
Zervos remains undeterred by criticism from Trump, stating that he understands the importance of being involved in the political process and prioritizing facts over politics to achieve policy goals.
Source: https://www.cnbc.com/2025/08/14/potential-fed-chair-pick-david-zervos-of-jefferies-backs-aggressive-interest-rate-cuts.html