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\I know for certain that lay people can bless objects, such as Rosaries or other sacramentals. In fact, if you bless water in the name of the Father-Son-and-Holy-Spirit, it is then considered to be holy water, not in any way different than if it was blessed by a priest!
However, if the tradition surrounding a particular sacramental prescribes a blessing from a priest, than a lay person cannot substitute. Example: a wearer of the Brown Scapular should have it blessed by a priest before wearing it for the first time.
As for blessing people, of that i am not sure.
NO.
A lay person CAN NOT bless rosaries medals etc…or Holy Water!!!
(the nature of these sacramentals …and the offical book of blessings makes this clear)