Bessent Hires Contrarian Economist David Zervos as Counselor

Treasury Secretary Scott Bessent has hired David Zervos as his counselor. Zervos is a veteran Wall Street economist with 35 years of experience, known for challenging consensus views on monetary policy.

Zervos spent nearly two decades at Jefferies LLC, where he was the chief market strategist. He has repeatedly argued that borrowing costs should be lower, and even suggested that the Federal Reserve's balance sheet could be cut to create room for lower rates.

The appointment comes at a delicate moment, with the 10-year Treasury yield hitting 5.2% on Friday, driven by a strong economy, competition for capital from the AI buildout, and inflation concerns tied to the Iran war. The Fed raised rates earlier this month for the first time since 2023.