Choose potential Fed chair David Zervos from Jefferies helps aggressive rate of interest cuts
The veteran of Wall Street, David Zervos, added its name to the list of the potential chairman of the Federal Reserve on Thursday, which believe that the central bank has not yet been adopted when the interest rate is approved.
The chief market strategist at Jefferies said CNBC that the central bankers should not discourage the July producer price index, which shows the pipeline inflation pressure hotter than expected.
Instead, he now campaigned aggressively to facilitate the slowdown of a labor market and actually create a million more jobs. In the last three Fed meetings, Zervos has used half a percentage point in the federal fund rate and repeated this position during an interview.
“I'm still absolutely there. I think there is a reasonable act, a very clear act that indicates that monetary policy is restrictive,” he said. “In general, I see no reason why that [PPI] The number changes this view. “
A process that contained only three or four names for the successor of the Fed Chairman, Jerome Powell, when his term in office has been expanded to almost a dozen in the past few days.
Zervos joins a list that includes current and former Fed officials, at least one Trump Administration Advisor and several other well -known Wall Street economists. From the group, Zervos and Blackrock Bond strategist Rick Rieder are the only ones, the background of which focuses more on markets than the economy.
“I think it would be an incredible advantage that more market-part, more market-competent people are involved in the monetary political decision,” said Zervos.
Earlier a day, the economist Marc Sumerlin, also on the list of finalists, also supported half a point average and said that the Fed was too conservative to lead the inflation battle.
President Donald Trump has pushed the Fed hard to shorten the Fed, repeatedly beat Powell and suggests that the Federal Open Market Committee should reduce up to 3 percentage points or 300 basis points from the fund rate, which is currently around 4.33%.
“I do not know that I could reach up to 300, but I could certainly 200 and I could be convinced of lower than that if you have the AI history and technological history and the idea that we have from a story on the pension side from disinflation practice,” said Zervos.
Zervos added that he was not deterred by the types of criticism that Trump paved the Fed.
“You enter into this job that you fully understand that you are involved in the political process,” he said. “The goal is to be driven by facts and to acquire the best mandates that the congress defines.”
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