Federal Reserve Chairman candidate Rick Rieder: Supports cutting interest rates to 3%

According to Odaily, Rick Rieder, BlackRock's Global Chief Investment Officer of Fixed Income and a potential successor to Federal Reserve Chairman Jerome Powell, is reportedly scheduled to be interviewed by U.S. President Trump on Thursday. At this juncture, Rieder reiterated his support for lowering the U.S. benchmark interest rate to 3%, which would mark the lowest level in more than three years.

In a CNBC interview aired on Monday, Rieder stated that he has repeatedly mentioned his hope for rates to drop to 3% over the past several months. On Monday, he once again expressed support for this move, which would reduce borrowing costs by at least 50 basis points (i.e., 0.5 percentage points) from current levels.

After the Federal Reserve cut rates by 25 basis points last December, the current federal funds rate target range stands at 3.5%—3.75%.

"I think the Federal Reserve does have some room for policy maneuvering," Rieder said. "My stance has been very clear for many months. The Fed must lower rates, and I don't think it needs to lower them by much—ultimately, 3% is enough, which is closer to the neutral rate." The neutral rate is a theoretical level of borrowing costs that is neither stimulative nor restrictive, and can maintain the steady operation of the U.S. economy.