David Zervos, the Chief Market Strategist at Jefferies, has garnered significant attention as a potential candidate for the role of Federal Reserve Chair, amid increasing activity on prediction markets.
This morning he placed his flag firmly in the ground as a front-runner and most assuredly got President Trump’s attention when he said during a CNBC interview that it’s inaccurate to describe the US central bank as independent, and moreover, ‘Wall Street Jesus’ (as he has been called given his hirsute characteristics) described the outgoing Fed chief as aligned with the political left.
“The Fed has never been independent, and the political pressures on the Fed have always been growing and continue to grow,” Zervos said on CNBC.
He then went further:
“I think he’s actually quite a bit dependent,” Zervos said of Powell.
“He’s operating politically from the left. Or, let’s put it this way, from the anti-Trump side.”
He highlighted pressure from Democratic lawmakers in recent years on monetary policymakers to lower interest rates.
History features episodes of Treasury secretaries and administrations “behind the scenes” trying to influence Fed chairs, Zervos also said.
Watch the full exchange here (with Andrew Ross Sorkin unable to contain his own ‘independence’)…
The comments in question! pic.twitter.com/5RqhVoqtRL
— BryGuy (@bryan_muni) August 20, 2025
The Jefferies strategist is no stranger to the limelight as some may remember he refused to cut his hair until Fed Chair Powell cut interest rates…
…which he did in 2019…
After which appears to have discovered Ozempic (picture here with Kellyanne Conway who he reportedly dated for a time)…
Zervos’ odds are on the rise across prediction markets with PolyMarket seeing a big spike yesterday and now Zervos is up to the 3rd place…
Zervos also repeated his argument that the steady contraction of the Fed’s balance sheet in recent years has left monetary policy more restrictive than many perceive – adding to the case for lowering rates.
“You’re left now with rates at a much more restrictive rate, without that extra kicker from the balance sheet,” Zervos said.
“So we really need to get rates back toward a more neutral level.”
Music to President Trump’s ears…
Professional subscribers can read David’s full recent notes here…
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