Bank of America Global Research discusses its expectations for today's FOMC minutes for the month of March.
"We expect the FOMC minutes to reveal that participants have become more constructive on the outlook, generally seeing greater upside risks, owing to a stimulus-induced rise in consumer spending. This will be consistent with the notable upgrade in the SEP forecasts. We also expect there to be a discussion about the sustainability of the recovery with many noting that the strength in the upcoming data could prove fleeting. Inflation will also be in focus given the significant rise in forecasts - it will be interesting to see which measures of inflation are front and center and if there is a sense of a comfort range for inflation," BofA notes.
"In regards to monetary policy, many participants will note that it is prudent to wait for confirmation in the actual data to signal a change in the policy stance but others will argue for preemptive policy. Given that a 7 participants looked for hikes in 2023 and a number more in 2022, we expect the minutes to show a divide in regards to the reaction function," BofA adds.