On Thursday, economist Marc Sumerlin confirmed he is among the candidates for Federal Reserve Chair, expressing interest in the position and advocating for aggressive rate cuts. Wall Street veteran David Zervos, Jefferies' chief market strategist and another candidate, also voiced support for substantial rate cuts the same day.

On Wednesday, Trump hinted at potentially appointing the next Fed Chair earlier than expected, narrowing the list to three or four candidates. U.S. Treasury Secretary Besant stated plans to consider up to 11 candidates. Zervos and BlackRock bond strategist Rick Rieder stand out among candidates for their stronger market backgrounds than economic expertise.

In the race to succeed current Fed Chair Powell, Sumerlin and Zervos align with President Trump's stance on interest rates. Trump has repeatedly urged the Fed to ease policy, proposing cuts of up to 3 percentage points, but the Powell-led FOMC has held rates steady since December 2024.

Sumerlin: Cutting Rates Is an Easy Decision

Sumerlin, former deputy director of the National Economic Council under George W. Bush and his 2000 campaign economic advisor, helped craft Bush’s signature Economic Growth and Tax Relief Reconciliation Act and Sarbanes-Oxley regulations but lacks Fed experience. Recently, he runs an economic consultancy and maintains ties with Besant.

On CNBC, Sumerlin called a Fed rate cut now "an easy decision": "The current yield curve, weak labor market, and stable inflation suggest we could easily cut 50 bps without disruption. It’s almost a no-brainer."

Regarding nomination, Sumerlin confirmed White House contact last week. He and Secretary Besant are close friends, discussing monetary policy weekly for 12 years. Sumerlin expressed interest in the nomination if conditions are met.

He stressed Fed independence—a principle challenged by Trump’s unprecedented public criticism of Powell and FOMC members, whom he called "losers" and "fools" for complacency.

Zervos: Unfazed by PPI, Advocates Decisive Cuts

David Zervos told CNBC Fed officials shouldn’t fear July’s hotter-than-expected PPI inflation data.

Instead, he urged immediate policy easing to prevent labor market slowdown, potentially adding 1 million jobs. Zervos has pushed for 50-bp cuts at the last three Fed meetings, reiterating it here.

"Having more market-savvy voices in policy would be hugely beneficial," he said.

On total cuts: "I’m unsure about 300 bps, but 200 bps is doable. If we emphasize AI/tech narratives and supply-side disinflation, I could be persuaded to go lower."

On Trump’s critiques, Zervos said: "You must understand this is a political process. The goal is fact-based debates, aligned with Congress’ mandate, to make optimal decisions."