Chair Candidate Zervos Fires Shots: Fed Policy Is Not Independent, Powell Has Long Been Biased

David Zervos, one of the candidates for Federal Reserve Chair and Chief Market Strategist at Jefferies, recently stated that it is inaccurate to describe the central bank as independent, and he believes that current Chair Jerome Powell aligns with the political left.

Zervos said in an interview: "The Fed has never been independent. Political pressure on the Fed has been increasing and continues to grow." He emphasized that in recent years, Democratic lawmakers have also consistently pressured monetary policymakers to lower interest rates.

Zervos also noted that historically, it has not been uncommon for Treasury Secretaries and the government to attempt to influence the Fed Chair "behind the scenes."

According to Xinhua Finance, U.S. Treasury Secretary Scott Bessent admitted in an interview last week that there are 10 to 11 candidates under consideration for the next Fed Chair, with Zervos among the newly added candidates.

Zervos began his career as an economist at the Fed before moving to Wall Street.

Speaking about current Fed Chair Powell, Zervos believes that during the Biden administration, he did "resist" many "crazy" initiatives, such as opposing strengthened financial regulations and some "woke" policies.

However, he also criticized Powell for failing to voice his opinions in the fiscal debate amid surging government spending: "I don't think he is actually independent. He operates from a left-wing standpoint—let's put it this way, he is on the anti-Trump side."

Zervos specifically mentioned in the interview that the Fed's 50-basis-point rate cut decision last September occurred less than two months before the election—many Republicans also believe this move somewhat aided the Democratic Party's campaign.