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Fed Chair Candidate Rick Rieder: Supports Interest Rate Cut to 3%
Summary: According to reports, Rick Rieder, Chief Investment Officer of BlackRock's Global Fixed Income, is a potential successor to Fed Chair Powell and is set to meet with President Trump on Thursday. Rieder reiterated his support for lowering the US benchmark interest rate to 3%, which would mark the lowest level in over three years. In ...
According to reports, Rick Rieder, Chief Investment Officer of BlackRock's Global Fixed Income, is a potential successor to Fed Chair Powell and is set to meet with President Trump on Thursday. Rieder reiterated his support for lowering the US benchmark interest rate to 3%, which would mark the lowest level in over three years. In an interview on CNBC on Monday, Rieder stated his view of lowering rates to 3% for months. He once again expressed support for this move on Monday, which would reduce borrowing costs by at least 50 basis points from current levels. After a 25 basis point rate cut in December last year, the current federal funds rate target range is 3.5% to 3.75%. 'I believe the Fed does have some policy space,' Rieder said. 'For many months now, my stance has been clear. The Fed needs to cut rates, and I don't think it needs to be too much, ultimately landing at 3% - a level closer to the neutral rate.' The neutral rate is a theoretical level of borrowing costs that neither stimulates nor restricts, maintaining stable operation of the US economy.
