Wall Street veteran David Zervos, chief market strategist at Jefferies, also endorsed rate cuts during a CNBC interview Thursday. For three consecutive Fed meetings, he has advocated half-percentage-point cuts in the federal funds rate.
“I think there is a reasonable storyline, a very cogent storyline, that suggests monetary policy is restrictive,” Zervos said. He argued for bringing “more market-savvy, more market-competent people” into monetary policy decisions.
Trump administration expands search
The Trump administration is reportedly evaluating 11 candidates to replace Federal Reserve chairman Jerome Powell when his term expires in May, according to two administration officials who spoke to CNBC. The expanded list includes three previously unnamed contenders: Zervos, former Fed governor Larry Lindsey, and BlackRock’s chief investment officer for global fixed income Rick Rieder.
The officials described a “deliberative process” where Treasury secretary Scott Bessent will interview all candidates, narrow the list and present final recommendations to Trump, CNBC reported. The size of the candidate pool suggests a decision may not be imminent and could require considerable time, though officials would not provide a timeline.
The complete list includes current Fed officials vice chair for supervision Michelle Bowman, governor Chris Waller and vice chair Philip Jefferson, Bloomberg News reported. Other candidates are National Economic Council director Kevin Hassett, former Fed governor Kevin Warsh, Sumerlin, Dallas Fed president Lorie Logan, and former St. Louis Fed president James Bullard.