BlackRock’s CIO fires at Fed’s policy delay: ‘It’s not a goods economy’

Key Points

1. BlackRock’s Rick Rieder argues that the U.S. service economy, not manufacturing, drives growth and would benefit from rate cuts to improve housing affordability and reduce inflation.

2. Rieder suggests lowering rates could bring down home prices and stimulate housing construction, countering the Fed’s current restrictive policy stance.

3. Despite Rieder’s push, market expectations (via CME FedWatch Tool) show a 95.9% probability of rates remaining unchanged after the July FOMC meeting.

4. Ethereum ETFs have seen $1.85 billion in net inflows (July 21-25), significantly outpacing Bitcoin ETFs, which recorded only $72 million in the same period.

5. The crypto market and housing sector are under strain due to the Fed’s current policies, with Rieder’s comments contrasting with Wall Street’s cautious stance on rate cuts.