BlackRock bucks the trend and lowers its expectations for interest rate hikes, stating that the Federal Reserve's rate cuts are "justified."

As Warsh officially took office as Chairman of the Federal Reserve, interest rate futures showed that the market had begun to bet on a Fed rate hike this year. The yield on two-year Treasury bonds rose from a low of 3.36% in March to about 4.12%, and the yield on 30-year Treasury bonds once broke through 5.2%.