Rick Rieder, Chief Investment Officer at BlackRock, has called for the Federal Reserve to lower interest rates ahead of the July 2025 FOMC meeting.
Call for Rate Cuts
Rick Rieder has urged the Federal Reserve to reduce interest rates, pointing to the negative impact of current monetary policy on housing affordability and low-income Americans. He noted that lowering rates could result in lower home prices and increased construction.
Impact on Housing Market
According to Rieder, reducing interest rates would help address affordability challenges in a service-driven economy. This could lead to lower housing prices, increased home building, and reduced inflation levels. He also emphasized that such changes could improve the economic landscape, particularly for low-income individuals.
Outlook for Risk Assets
If rates are lowered, there may be an increase in investments and a renewed interest in risk assets, including cryptocurrencies. Historical data suggests that such policy shifts have often led to price increases in cryptocurrencies like BTC and ETH. However, current market expectations for imminent rate cuts are low, with less than a 5% probability.
Rick Rieder's call for a reduction in interest rates highlights critical issues regarding housing affordability and the potential impact on risk assets in the global economy.
