Updated
Updated · CNBC · Sep 28
Bessent Appoints David Zervos as Treasury Counselor as 7 of 16 Senate-Confirmed Officials Have Left
Updated
Updated · CNBC · Sep 28

Bessent Appoints David Zervos as Treasury Counselor as 7 of 16 Senate-Confirmed Officials Have Left

3 articles · Updated · CNBC · Sep 28

Summary

  • David Zervos, Jefferies' longtime chief market strategist, will start immediately as a Treasury counselor in a broad advisory role under Scott Bessent.
  • The hire bolsters a department hit by turnover: seven of Treasury's 16 Senate-confirmed appointees had departed by mid-August, and Bessent is already on his third chief of staff since January 2025.
  • Zervos arrives aligned with Bessent on key market issues, having backed increased buybacks of some long-term Treasury debt and repeatedly argued for lower Federal Reserve interest rates.
  • Those views land as Treasury and the Fed grapple with rising yields — the 10-year Treasury reached 5.2% Friday, its highest since 2007 — after the Fed's first rate hike since 2023.
  • Zervos said he will serve as a special government employee through April 2027, a status that avoids some divestiture requirements but limits how long he can stay.

Insights

With buybacks doubling, how will David Zervos's appointment reshape the government's strategy for managing multi-decade high borrowing costs?
Can a Wall Street strategist's technical maneuvers truly fix the Treasury's bond market pressures, or are they just a temporary band-aid?