Treasury Secretary Scott Bessent has hired veteran Wall Street economist David Zervos as a counselor at the US Treasury Department. Zervos is the longtime chief market strategist at Jefferies and has also worked as a CNBC contributor.
Because higher yields can increase the government’s borrowing costs and affect broader financial markets, the rise in Treasury yields is important. The 10-year Treasury is also a key benchmark for borrowing costs across the US economy, including mortgages and corporate debt. Zervos has worked at Jefferies, the New York-based investment bank, since 2010.
He said last year that he believed interest rates should be “much lower. The details of Zervos’ views and appointment were reported by CNBC. Zervos has supported Bessent’s recent move to increase Treasury buybacks. The Treasury increased buybacks of some longer-term government debt, a move aimed at helping manage pressure in Treasury markets. Zervos has also been a strong supporter of lower interest rates. Trump ultimately selected Kevin Warsh for the position in January. Zervos’ previous support for lower interest rates and Treasury debt buybacks could make his economic views particularly relevant in his new advisory role. His appointment gives Bessent another Wall Street economist with experience in interest rates, Treasury markets and Federal Reserve policy.
Zervos was previously considered by Trump for the job of Federal Reserve chair.
