Treasury Secretary Bessent Hires David Zervos as Counselor
The Jefferies economist will advise Treasury as bond yields rise and debates continue over Federal Reserve policy and artificial intelligence spending.
Treasury Secretary Scott Bessent has hired Jefferies economist David Zervos as a counselor, adding a veteran Wall Street economist to the Treasury Department as bond yields and economic policy debates intensify.
Zervos will start the job immediately, advising Bessent on a wide range of policy matters. The position does not require Senate confirmation.
The appointment comes as the 10-year Treasury yield reached 5.2% on Sept. 25, a level last seen in 2007. Treasury markets have faced pressure from a strong economy, competition for capital from artificial intelligence spending and inflation concerns as the Iran war continues.
Zervos has supported Bessent’s decision to increase buybacks of some long-term Treasury debt. “I don’t see how you could fight this when the firepower and the cards are all sitting in the Treasury Department,” Zervos said last month.
Zervos has worked at Jefferies since 2010 and holds a doctorate in economics. He previously worked at the Federal Reserve twice, including a return in 2009 as a visiting adviser in the wake of the financial crisis.
He has said interest rates should be “much lower” and argued that Federal Reserve Chair Kevin Warsh could create room for lower rates by reducing the central bank’s balance sheet. The central bank delivered its first rate increase since 2023 earlier this month.
Bessent said Sept. 27 that the Federal Reserve “should have an open mind” about managing the economy.
