The influence of Jerome Powell over the stock market may be fading fast as investors begin to pay closer attention to the voices likely to shape the Federal Reserve’s next era—especially those on President Donald Trump‘s shortlist of potential replacements.
That’s the take from David Zervos, chief market strategist at Jefferies and one of 11 candidates being considered by Trump to replace Powell when his term expires in May 2026.
Zervos Slams Fed Policy As Too Restrictive
Speaking on CNBC, Zervos dismissed Powell’s recent remarks, calling stocks “fairly highly valued,” indicating that broader earnings strength and pro-investment policy shifts are far more relevant.
“We have an incredible earnings outlook ahead of us,” Zervos said.
According to Zervos, tariffs, tax policies and investment incentives are reshaping the playing field in ways the Fed’s models don’t fully capture.
Zervos reiterated his long-standing criticism of current monetary policy, saying the Federal Reserve’s stance remains excessively tight even as the economy shows signs …