Market Strategist Supports Aggressive Rate Cuts

David Zervos, Chief Market Strategist at Jefferies LLC and a potential candidate for the next Federal Reserve chair under President Donald Trump, has publicly endorsed more substantial interest rate cuts. In a recent CNBC interview, Zervos shared his views on the current monetary policy stance.

Consistent Advocacy for Lower Rates

Zervos revealed that for the past three Fed meetings, he would have favored a 50-basis-point reduction in rates. "I'm still absolutely there. I think there is a reasonable storyline, a very cogent storyline, that suggests monetary policy is restrictive," he stated, emphasizing his stance on the issue.

Responding to Presidential Calls

Addressing President Trump's suggestion for a 3% or 300 basis points cut, Zervos expressed skepticism about such a drastic measure but remained open to significant reductions. "I certainly could get to 200 [bps] and I could be convinced on lower than that if you really push the AI story and the technology story and the idea that we have disinflationary pressures building from a supply-side narrative," he explained, highlighting the influence of technological advancements and supply-side factors on his decision-making.