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Federal Reserve Chairman candidate Rick Rieder: Supports lowering the interest rate to 3%
Svmuu News BlackRock Rick Rieder, Chief Investment Officer of Global Fixed Income, is a potential successor to Federal Reserve Chairman Jerome Powell and is reportedly scheduled to meet with U.S. President Donald Trump on Thursday.On this occasion, Rieder reiterated his support for lowering the U.S. benchmark interest rate to 3%, a level that would mark the lowest in more than three years.In a CNBC interview aired on Monday, Riddle stated that he has repeatedly expressed his desire to see rates drop to 3% over the past several months. He reiterated his support for this move on Monday, noting that it would lower borrowing costs by at least 50 basis points (or 0.5 percentage points) from current levels. Federal Reserve Following a 25-basis-point rate cut last December, the current target range for the federal funds rate stands at 3.5%–3.75%. “I believe Federal Reserve there is indeed some room for policy maneuvering,” Riedel said. “My stance has been very clear over the past several months. Federal Reserve Rates must be cut, and I don’t think they need to be cut by much—a final level of 3% would suffice, as that is closer to the neutral rate.” The neutral rate is a theoretical level of borrowing costs that is neither stimulative nor restrictive and is capable of sustaining a stable U.S. economy.
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