Ethereum News Today: BlackRock CIO Urges Fed to Cut Rates Before July 2025 Meeting to Ease Housing Strain Inflation

BlackRock Chief Investment Officer Rick Rieder has amplified calls for the Federal Reserve to implement rate cuts before the upcoming July 2025 FOMC meeting, emphasizing the need to address housing market strain and inflationary pressures. Rieder’s arguments, presented in a Bloomberg interview and other platforms, center on the idea that high borrowing costs are exacerbating housing affordability challenges and stifling construction activity. He contends that reducing interest rates could stimulate housing development, stabilize home prices, and mitigate inflation through demand-side adjustments [1][2][3]. Rieder also highlighted that refinancing has become unattractive under current rates, which he argues has contributed to sluggish construction and rising housing costs [1].

The CIO’s stance contrasts with the Fed’s current hawkish approach and reflects growing concerns about the economic impact of prolonged high interest rates. Rieder stressed that even a 3.25% rate would remain above current inflation levels, underscoring the urgency for policy action [1]. His remarks have drawn attention amid political and economic tensions, including mounting criticism of Fed Chair Jerome Powell’s leadership. President Donald Trump has repeatedly called for rate reductions, while Fed officials like Christopher Waller and Mary Daly have hinted at potential changes in 2025 [1][3].

Market expectations, however, suggest skepticism about an imminent rate cut. According to CME FedWatch data, there is a 95.9% probability of no change in the target rate range of 4.25–4.50% after the July meeting, with only a 4.1% chance of a reduction to 4.00–4.25% [1][5]. This aligns with the Fed’s data-dependent approach, where strong labor market metrics and inflation indicators remain critical benchmarks. Rieder’s advocacy for immediate action highlights a broader push for proactive policy to address systemic risks, particularly in housing and construction sectors [1][3].

Rieder’s influence extends beyond traditional financial markets. His comments have resonated with crypto investors, as lower interest rates typically boost demand for risk assets like Bitcoin and Ethereum. Recent inflows into Ethereum ETFs, which outpaced Bitcoin ETFs in July, reflect anticipation of accommodative monetary policy [5]. While Rieder did not explicitly mention cryptocurrencies, his call for rate cuts aligns with crypto-native investors’ hopes for a Fed pivot, illustrating the growing interplay between traditional and digital asset markets [5].

Critics caution that premature rate cuts could reignite inflationary pressures, as the Fed has consistently prioritized price stability. Rieder’s argument hinges on the idea that current inflation metrics may not fully capture the dynamics of a service-dominated economy, where wage growth and housing costs are pivotal [3]. This perspective challenges conventional frameworks for assessing inflation and emphasizes the need for tailored policy responses.

The debate over interest rates has intensified as the FOMC meeting approaches. Rieder’s advocacy adds weight to the case for rate cuts, particularly in sectors facing acute affordability challenges. However, the Fed’s reluctance to act without clear data signals suggests that any policy shift will remain contingent on real-time economic indicators. The outcome of the July meeting will not only shape U.S. monetary policy but also influence global markets, including crypto assets sensitive to interest rate fluctuations [5].

Sources:

[1] [BlackRock CIO Urges Fed to Cut Rates Ahead of FOMC Meeting](https://coincentral.com/blackrock-cio-urges-fed-to-cut-rates-ahead-of-fomc-meeting/)

[2] [BlackRock CIO Urges Fed Rate Cuts to Ease Housing Strains](https://www.ainvest.com/news/blackrock-cio-urges-fed-rate-cuts-ease-housing-strains-citing-6-mortgage-reduction-impacting-5-5m-households-2507/)

[3] [BlackRock Urges Fed Rate Cuts to Tackle Inflation](https://www.ainvest.com/news/blackrock-urges-fed-rate-cuts-tackle-inflation-stabilize-housing-market-july-2025-meeting-2507/)

[4] [BlackRock CIO Calls For Rate Cut Ahead Of FOMC Meeting](https://coingape.com/blackrock-cio-calls-for-rate-cut-ahead-of-fomc-meeting/)

[5] [BlackRock’s CIO fires at Fed’s policy delay](https://ambcrypto.com/blackrocks-cio-fires-at-feds-policy-delay-its-not-a-goods-economy/)

[6] [BlackRock calls for the Fed to cut interest rates](https://www.cryptopolitan.com/blackrock-calls-for-the-fed-to-cut-rates/)

[7] [Best Cryptos To Buy Now](https://coincentral.com/best-cryptos-to-buy-now-ethereum-tokens-on-sale-as-market-crashes-these-eth-tokens-could-rip-5x-higher/)