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

On May 25th, according to Jinshi, as Warsh officially took office as Chairman of the Federal Reserve, interest rate futures indicated that the market had begun to anticipate a Fed rate hike this year. The yield on two-year Treasury notes climbed from a March low of 3.36% to approximately 4.12%, and the yield on 30-year Treasury bonds briefly surpassed 5.2%. However, Navin Saigal, Global Head of Fixed Income for Asia Pacific at BlackRock, commented that under Warsh's leadership, the Fed has substantial grounds to maintain or even reduce interest rates, and the job market might encounter future challenges. The more prudent course of action currently is to maintain the status quo. Chitrang Purani, Portfolio Manager at Capital Group, stated that the bar for raising interest rates remains high, and the Fed under Warsh's leadership will exercise patience before taking further steps, concentrating on observing the impact of inflation on the labor market and financial conditions.