Treasury Secretary Bessent appoints David Zervos as counselor

Treasury Department bond yields interest rates Treasury buybacks economic policy

Treasury Secretary Scott Bessent has appointed Jefferies economist David Zervos as a counselor to the Treasury Department. Zervos, a veteran economist with previous experience at the Federal Reserve, will advise on policy matters without requiring Senate confirmation.

The appointment occurs amid intensifying debates over economic policy and rising bond yields, with the 10-year Treasury yield reaching 5.2% on September 25. Bessent has recently implemented an expanded long-dated Treasury buyback program, increasing the maximum repurchase size for 10–30-year Treasuries from $2 billion to as much as $6 billion per operation.

Bessent has also publicly urged Federal Reserve policymakers to maintain an “open mind” regarding interest rates. He argued that productivity gains from artificial intelligence and deregulation could help manage inflation. This comes as the U.S. economy faces pressures from elevated fuel prices linked to conflict with Iran and competition for capital driven by AI spending.