Bank of America analysts expect Kevin Hassett to reduce US interest rates to a level well below 3%, if he is nominated to head the Federal Reserve to succeed current Chairman Jerome Powell.
Analysts explained in a note that Hassett may call for major cuts in borrowing costs during his presidency of the central bank, pointing to repeated calls by President Trump.
They also noted that Hassett's success in aggressively lowering rates - from their current levels of 3.75% and 4% - will depend not only on the flow of data, but also on the formation of the Federal Open Market Committee, which sets rates.
These expectations come with the emergence of the name of Hassett, who is the current director of the National Economic Council in the White House, as the most likely candidate to succeed Powell, according to Bloomberg, citing sources familiar with the matter.
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