Federal Reserve Chair nominee Riedel has voiced his support for a rate cut to 3%.

 Rick Rieder, BlackRock's Global Chief Investment Officer of Fixed Income, is a potential successor to Federal Reserve Chairman Jerome Powell. It is reported that he will have an interview with U.S. President Donald Trump on Thursday. At this time, 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, Rieder said he has been repeatedly mentioning for months his hope that rates will drop to 3%. He expressed support for this move again on Monday, which would reduce borrowing costs by at least 50 basis points (i.e., 0.5 percentage points) from the current level.

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

“I think the Federal Reserve really has some room for policy action,” 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 reaching 3% — a level closer to the neutral rate.” The neutral rate is a theoretical borrowing cost level that is neither stimulative nor restrictive, capable of maintaining stable operation of the U.S. economy.