Potential Federal Reserve Chair David Zervos supports a sharp rate cut

According to CNBC, David Zervos, chief market strategist at Jefferies, the potential Fed chair, said Fed officials should not be deterred by the higher-than-expected underlying inflationary pressures indicated by July's producer price index. Instead, he argued that the Fed is now aggressively easing measures to prevent a slowdown in the labor market that could actually help create more than a million jobs. Zervos has advocated a half percentage point cut in the federal funds rate at the past three Fed meetings, and he reiterated that stance in an interview. "I absolutely still hold the same view. I think there's a reasonable, very compelling storyline that monetary policy is restrictive. Overall, I don't see any reason to change that view."