Treasury Secretary Bessent Appointed Economist David Zervos

The appointment of the former Jefferies economist signals a shift in Treasury policy during a period of high yields.

Updated on Sept. 28, 2026 in Economic Indicators

Treasury Secretary Bessent Appointed Economist David Zervos

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Treasury Secretary Scott Bessent has appointed economist David Zervos as a counselor to the agency. The role does not require Senate confirmation and begins immediately to advise on policy amid volatile market conditions.

Why it matters

The hire comes as bond yields hit levels not seen since 2007, complicating financing costs and debt management strategies for businesses nationwide. Bessent is seeking expertise to navigate these pressures as the Federal Reserve pivots on interest rates.

The 10-year Treasury yield reached 5.2% on September 25, 2026, versus the last time it hit that level in 2007. The appointment remains finalized as the Federal Reserve delivered its first rate increase since 2023 earlier this month.

The players

Scott Bessent

The Treasury Secretary of the United States who holds authority over domestic finance and economic policy.

David Zervos

A doctorate-holding economist with prior experience at the Federal Reserve and Jefferies.

Federal Reserve

The central banking system of the United States responsible for setting interest rates.

The details

Zervos joins the Treasury after a long tenure at Jefferies and two previous stints at the Federal Reserve. As a counselor, he will advise Secretary Bessent on navigating a landscape of rising bond yields and changing monetary policy. Because this role is a non-confirmed appointment, Zervos can begin advising immediately on Treasury policy and economic debates.

2007: The 10-year Treasury yield last reached current levels.
2009: Zervos served as a Federal Reserve visiting adviser.
2010: Zervos began his tenure at Jefferies.
September 25, 2026: The 10-year Treasury yield reached 5.2%.
September 27, 2026: Bessent commented on Federal Reserve policy.

Market Landscape

The current economic environment follows the pattern set by the 2007 peak of 10-year Treasury yields. This shift marks a notable departure from the low-interest-rate regime that defined the post-2023 Federal Reserve era.

Operators should prepare for sustained volatility in capital markets as yields remain at 20-year highs. Consult your accountant regarding how rising Treasury yields could impact your firm's borrowing costs and discount rates for long-term investments.

The takeaway

Zervos brings extensive institutional knowledge from the Federal Reserve to the Treasury, suggesting a focus on bond market stabilization. Monitor the next Federal Reserve policy meeting for signals on whether these yield levels will influence upcoming rate decisions.