Treasury Secretary Scott Bessent has appointed David Zervos, the former chief market strategist at Jefferies, as a counselor in the Treasury Department. Zervos, who has a strong background in economics and has previously worked for the Federal Reserve, will provide advisory support starting immediately.
His hiring comes at a time when the Treasury has seen several staff departures, which has raised concerns about continuity within the department. Zervos has publicly supported Bessent's recent decision to increase buybacks of long-term Treasury debt and has advocated for lower interest rates from the Federal Reserve.
The backdrop for these discussions includes the recent rise in the 10-year Treasury yield to 5.2%, a level not seen since 2007, driven by economic strength and inflation concerns. Zervos's insights are expected to bolster Bessent's strategies as they navigate complex economic conditions, including trade tensions and the impact of the ongoing Iran war