Bitcoin News Today: BlackRock CIO: Fed's Rate Delays Harm Housing in Service-Driven Economy

Okay, let's tackle this. The user wants me to summarize a news article titled "BlackRock’s CIO fires at Fed’s policy delay: ‘It’s not a goods economy’" using the provided content. But wait, looking at the compilation they gave, I need to check if that specific article is there.

The user mentioned the title, but in the provided HTML content, the only article is from ambcrypto.com with the same title. However, when I look at the content, it's actually about Rick Rieder from BlackRock urging rate cuts and his arguments against the Fed's current policy. So the user's initial title matches the article in the compilation, but there's a note saying the requested news isn't present. That seems conflicting. Maybe the user made a mistake, but I'll proceed with the provided content.

First, I need to filter out any unrelated articles. The compilation only includes one article, which is the relevant one. The user wants a Bloomberg-style press release, 600 words, without subheadings, and with proper citations. Also, they want the structure different from the original but not distorting the truth. I need to make sure not to include any ads and remove mentions of China's regions.

Looking at the content, there's a mention of ETH and BTC ETFs, but the main focus is on Rieder's comments. The key points are his push for rate cuts, the service economy argument, impact on housing, and the current Fed stance. The CME FedWatch Tool data and the ETH/BTC inflows are also part of the article.

I need to structure the summary starting with Rieder's criticism, his arguments, the Fed's current stance, and the crypto market reactions. Ensure each paragraph is clear and concise. Check for any forecasts and note them as such. Also, cite the sources properly with numbers and URLs at the end.

Wait, the user provided the URL for the article, so that's the source. The example in the query shows how to format the citations with [1], [2], etc. Since there's only one source here, all citations will be [1]. The user wants the output in English, no introduction or title, just the main text with line breaks for readability.

Also, need to make sure the term "China Taiwan, China Hong Kong, and China Macau" are not present. Scanning the content, there's no mention of these regions, so no issue there. Remove any advertisements if present. The provided content seems clean except for the "Subscribe to our must read daily newsletter" and the next article preview, which I'll omit.

Now, rewrite the content into a Bloomberg-style press release, ensuring each paragraph is on a separate line and flows smoothly. Use the key takeaways from the original content but rephrase them. Check that the word count is around 600 words. Make sure the analysis is based solely on the given data and not adding external information. Finally, list the source with the correct URL.

BlackRock’s Rick Rieder has joined the chorus of voices urging the Federal Reserve to reconsider its prolonged high-interest-rate policy, arguing that the U.S. economy has shifted toward a service-driven model that is being unfairly penalized by current monetary conditions. In an interview with Bloomberg, Rieder emphasized that the Fed’s delayed response to inflationary pressures risks exacerbating imbalances in sectors like housing, where elevated borrowing costs are stifling demand and affordability. His remarks, which contrast with the Fed’s recent hawkish stance, highlight growing tension between traditional economic indicators and the realities of a modern, service-centric economy [1].

Rieder’s critique centers on the mismatch between the Fed’s inflation-fighting strategies and the structural changes in the U.S. economy. “The service economy is what drives this economy today. It’s not a goods-oriented economy, not commodities, not exports, not manufacturing,” he stated, underscoring that service-sector growth is increasingly disconnected from traditional metrics like manufacturing output or goods prices. This shift, he argued, has diluted the effectiveness of aggressive rate hikes, which disproportionately harm credit-dependent sectors such as housing. “The real impact of interest rates on the economy today… it’s about housing,” Rieder added, noting that restrictive rates have curtailed new construction and price moderation [1].

The CIO’s stance reflects broader concerns about the Fed’s ability to balance inflation control with economic stability. While the central bank has maintained a data-dependent approach, relying on employment and inflation metrics to justify its current policy, Rieder contended that this framework fails to account for the service sector’s dominance. He pointed to a hypothetical rate cut to 3.25%—still above current inflation levels—as a potential catalyst for housing market recovery, arguing that lower borrowing costs could stimulate construction and reduce housing inflation. “If we get the rate down, you actually can bring home prices down. You build more houses, you’ll actually reduce inflation,” he asserted [1].

The market’s reaction to these debates has been mixed. Despite Rieder’s advocacy for easing, the CME FedWatch Tool indicates a 95.9% probability that rates will remain unchanged following the July FOMC meeting, with only a 4.1% chance of a cut. This skepticism is compounded by recent macroeconomic data, including a strong jobs report that reinforced the Fed’s resolve to avoid premature pivots. However, Rieder’s influence could resonate with investors in risk assets, particularly in crypto markets, where lower rates traditionally drive inflows. While Bitcoin [BTC] inflows have lagged, Ethereum [ETH] ETFs have outpaced their Bitcoin counterparts, drawing $1.85 billion in net inflows from July 21–25 compared to just $72 million for BTC [1].

Rieder’s comments also underscore a broader policy dilemma: how to reconcile the Fed’s dual mandate of price stability and maximum employment with the evolving dynamics of a service-driven economy. His argument that the Fed’s current approach “does more harm than good” in sectors like housing aligns with emerging critiques that monetary policy has become misaligned with modern economic structures. Yet, the central bank’s adherence to its inflation-targeting framework—coupled with market expectations of a delayed rate cut—suggests that any policy shift will remain contingent on a “super-soft” economic landing [1].

As the July FOMC meeting approaches, Rieder’s position adds weight to the case for gradual easing, even as the Fed remains cautious. The interplay between traditional economic indicators and the realities of a service-centric economy will likely dominate the central bank’s deliberations. For now, markets are watching closely, with crypto investors in particular keenly aware that any policy pivot could reignite momentum in risk-on assets.

Source: [1] [BlackRock’s CIO fires at Fed’s policy delay: ‘It’s not a goods economy’] [https://ambcrypto.com/blackrocks-cio-fires-at-feds-policy-delay-its-not-a-goods-economy/]