Treasury Secretary Scott Bessent has appointed David Zervos, a seasoned Wall Street economist and former chief market strategist at Jefferies, as a counselor to the Treasury Department. Zervos, who has contributed to CNBC and spent over 15 years analyzing Federal Reserve policy and financial markets, will provide broad advisory support in the department. His hiring was announced on September 28, 2026, and does not require Senate confirmation, allowing him to begin work immediately.

Zervos, who holds a doctorate in economics and has had two previous stints with the Federal Reserve, has been a vocal advocate for lowering interest rates and supported Bessent’s recent move to increase Treasury debt buybacks. His appointment comes as the Treasury grapples with rising bond yields, driven by a strong economy, capital demands linked to artificial intelligence investments, and inflation concerns amid ongoing geopolitical tensions. Zervos praised Bessent’s leadership through complex economic challenges including trade disputes and global conflict.

The Treasury Department has seen notable staff turnover recently, with seven of 16 Senate-confirmed officials resigning by mid-August 2026. Bessent, who has been Treasury Secretary since January 2025, is on his third chief of staff in that time. Zervos’s role follows the departure of Joseph Lavorgna, who served as a counselor earlier in Bessent’s tenure. Zervos is expected to serve as a special government employee until April 2027, a status that limits the duration of his appointment but allows flexibility regarding financial holdings.

Zervos has previously been considered by President Donald Trump as a potential Federal Reserve chair, a role ultimately filled by Kevin Warsh in 2025. He believes Warsh can facilitate lower interest rates through balance sheet reductions, a key Federal Reserve focus. The recent rate hike by the Fed—the first since 2023—has met with mixed reactions within the Trump administration, although Bessent has urged a careful and open-minded approach. Zervos’s expertise is expected to bolster the Treasury’s capacity to manage ongoing economic policy debates and market pressures.