Potential Fed chair pick David Zervos of Jefferies backs aggressive interest rate cuts

Wall Street veteran David Zervos added his name Thursday to the list of potential Federal Reserve chairs who think the central bank is past due in approving an interest rate reduction.

The chief market strategist at Jefferies told CNBC that central bankers shouldn't be daunted by the July producer price index showing pipeline inflation pressures hotter than expected.

Instead, he advocated the Fed move aggressively now to ease as a way to forestall a labor market slowdown and in fact help create a million more jobs. For the past three Fed meetings, Zervos has advocated a half percentage point cut in the federal funds rate, and he repeated that position during an interview.

"I'm still absolutely there. I think there is a reasonable storyline, a very cogent storyline, that suggests mon