Surprised Powell went to Supreme Court hearing on Fed's Lisa Cook, says Jefferies' David Zervos

Watch on YouTube ↗  |  January 21, 2026 at 18:55  |  4:12  |  CNBC
Speakers
David Zervos — Chief Market Strategist, Jefferies

Summary

David Zervos, Jefferies chief market strategist, reacts to the Supreme Court arguments over whether to allow the firing of Fed Governor Lisa Cook. He says he was surprised Powell attended the hearing and thought it sent a bad message. On markets, Zervos dismisses inflation concerns, arguing technology-driven productivity is a powerful disinflationary force while the labor market is weak. He sticks with a long-term productivity-boom view and sees metals as a flawed inflation signal.

  • Supreme Court appears skeptical of allowing Lisa Cook firing to proceed.
  • David Zervos was surprised Powell attended the hearing and saw it as bad messaging.
  • Powell is in his waning months at the Fed and seems less concerned with consequences.
  • Zervos says inflation concerns are overdone, with CPI at 2.7% and trending lower.
  • Technology productivity is the biggest long-term disinflationary driver.
  • Labor market is weak, especially for younger workers, and the Fed missed the labor mandate.
  • Zervos remains long-term positive on a technology-driven productivity boom.
  • He dismisses metals as a reliable inflation sign.
Ideas
David Zervos Chief Market Strategist, Jefferies 3:00
Long Treasuries on disinflation and weak labor
Inflation is not the problem the market fears: CPI is at 2.7% and on a downward trajectory, technology-driven productivity is a powerful disinflationary force, and the labor market is weak, especially for younger workers. The Fed has missed the labor side of its dual mandate, with unemployment up over a full percentage point while inflation has moved close to target, so rates should still come down. This supports duration and US Treasuries.
TLT MED
David Zervos Chief Market Strategist, Jefferies 3:17
Technology drives long-term disinflationary productivity boom
Technology and innovation are the biggest long-term disinflationary drivers, more important than tariffs or the end of globalization. He is sticking with his long-term view that this is a real productivity boom, which supports the technology sector as a beneficiary of the productivity trend.
XLK MED
David Zervos Chief Market Strategist, Jefferies 3:46
Metals as inflation hedge are unattractive
Investors looking at metals as an inflation sign are misreading the macro backdrop. The dominant inflation driver is technology-driven productivity, which is disinflationary over decades and centuries, so the inflation-hedge rationale for metals is weak.
XME MED
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This CNBC video, published January 21, 2026, features David Zervos discussing TLT, XLK, XME. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: David Zervos  · Tickers: TLT, XLK, XME