The Federal Reserve is expanding its balance sheet in a move that signals the potential return of quantitative easing.
This policy essentially allows the central bank to create new money for purchasing government bonds and other assets.
The stated purpose of quantitative easing is to inject money into the financial system. The Fed aims to lower interest rates and stimulate economic activity during periods of weakness.
Earlier rounds of quantitative easing pumped trillions of dollars into financial markets.
This influx drove mortgage rates downward while simultaneously pushing home prices to unprecedented levels.
The surge in housing prices occurred as housing supply reached a historic low. Millions of young Americans entering adulthood found themselves priced out of the market entirely.
Economists have issued warnings that Gen Z will feel the effects more directly than any previous generation, according to Rift News. This cohort already faces rising housing costs, wage stagnation and a rapidly shifting economic landscape.
If quantitative easing continues, experts predict liquidity could flow into the real estate market once again. This influx would likely push prices even higher for prospective buyers.
Gen Z currently confronts the worst housing affordability in modern American history. “We didn’t kill the American Dream. It was sold for parts,” one disgruntled X user said amid the growing crisis.
Continued quantitative easing could cement their status as a generation of permanent renters rather than homeowners, Rift News said.
BlackRock stands as the world’s largest asset manager.
The financial giant controls over $10 trillion in assets spanning stocks, bonds, real estate, infrastructure and global markets.
The firm operates differently from traditional banks. BlackRock does not lend money or accept deposits, instead managing investments for pension funds, governments, corporations and wealthy clients.
The company’s massive size enables it to shape corporate decisions and influence government policy. It dominates public markets while facing limited oversight despite its outsized influence.
BlackRock manages government funds while simultaneously investing in markets influenced by its own guidance. Critics contend this arrangement creates serious conflicts of interest.
Rift News noted that the firm maintains it is not purchasing single-family homes directly. However, BlackRock openly invests in real estate through mortgage-backed securities, rental housing developments and major industry players.
BlackRock has built significant connections between Wall Street and Washington.
The firm has hired former regulators and policymakers, including Dalia Blass from the Securities and Exchange Commission.
Brian Deese previously worked as a BlackRock executive before serving on the National Economic Council. Adewale Adeyemo served as chief of staff to BlackRock’s CEO prior to becoming Deputy Secretary of the Treasury, per Rift News.
BlackRock’s ties to the Chinese Communist Party raise particular concerns. The firm holds the first wholly-owned foreign mutual fund license in China.
American investors are legally prohibited from directly owning Chinese firms. BlackRock’s clients instead hold shares of offshore shell entities designed to bypass these restrictions.
A congressional committee opened an investigation in 2023 into BlackRock’s investment practices. The probe examined whether the firm invested retirement savings in Chinese companies blacklisted for national security and human rights violations.
The committee subsequently revealed that BlackRock invested more than $429 million in companies tied to the Chinese military and surveillance apparatus.
Rift News added that Marco Rubio recently argued that the United States is transitioning from a unipolar era to a multipolar one.
Gen Z entered adulthood during one of the most volatile economic periods in modern history.
For this generation, renewed quantitative easing represents far more than an abstract policy debate.
The policy will determine whether young Americans can afford housing, build savings and pay off debt.
It will shape their ability to eventually start families and pursue traditional markers of success.
The question remains whether this generation will achieve homeownership or face a future as permanent renters.
