Speaking on CNBC\u2019s Power Lunch, Zervos suggested that a reshaped Fed under President Donald Trump may lean toward lower interest rates, supporting risk assets.<\/p>\n
With Jerome Powell\u2019s term ending in spring 2025, Zervos noted that Trump could appoint two or more new Fed members. If so, four of seven board seats would be Trump-appointed, potentially aligning monetary policy with a pro-growth strategy.<\/p>\n
\u201cA Trump-influenced Fed would likely push for easier policy,\u201d said Zervos. \u201cThat\u2019s typically bullish for stocks.\u201d<\/p>\n
Zervos compared this scenario to the Greenspan-era policies of the 1990s, where bold rate cuts supported markets.<\/p>\n
\u201cThe risks Greenspan took eventually paid off,\u201d he said. \u201cA new Fed chair may follow the same playbook.\u201d
\nSuch a move could especially benefit technology stocks and growth sectors, both of which are highly sensitive to rate changes.<\/p>\n