The race to replace Jerome Powell as Chairman of the Federal Reserve has taken a sharp turn toward Wall Street’s most powerful asset manager.
Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income, has seen his odds of securing the nomination surge in recent days.
According to data from prediction market Polymarket, Rieder’s odds of being nominated have jumped from single digits earlier this month to 32% as of Thursday.
He is now the second-leading contender, closing the gap with former Fed Governor Kevin Warsh, who leads the pack at roughly 44%.
The sudden repricing follows reports from Bloomberg and other outlets that Rieder had a Thursday meeting at the Oval Office.
The neutral rate pitch
Chair Jerome Powell has maintained a “higher for longer” stance to crush the last remnants of inflation. However, Rieder has been publicly advocating for a pivot.
He has argued that the “neutral” rate is closer to 3%. The current Fed funds rate sits significantly higher (in the 3.5%–3.75% range after December cuts).
Rieder has also expressed an “atypical” tolerance for U.S. deficits, arguing that global demand for U.S. assets remains robust enough to absorb the supply.
He has also echoed Treasury Secretary Scott Bessent’s call for the Fed to use its balance sheet more “creatively,” meaning that the Fed would be willing to provide liquidity to strategic sectors of the economy.
A long-time Bitcoin supporter
Back in 2021, as reported by U.Today, Rieder described Bitcoin as “interesting” and, most importantly, “durable.” He predicted that the flagship cryptocurrency would be part of the investment landscape for years to come.
Fast forward to 2026, and Rieder’s prediction appears prescient. BlackRock is, of course, is also the biggest player on the cryptocurrency ETF scene. IBIT alone boasts a staggering $70 billion in assets under management.
Alexander Grieve, vice president of government affairs at cryptocurrency investment firm Paradigm, has quipped that BlacRock is now taking over both Bitcoin and the Fed.