Bank of America Global Research discusses its expectations for tomorrow's FOMC minutes for the meeting of April 27-28.
"The FOMC minutes are likely to show that the core of the Federal Reserve is comfortable with the current stance of policy. With jobs still well below pre-COVID levels, the Fed is committed to fostering greater job creation. There may be some discussion about concerns over shortages given that demand has surged but the supply side has been slow to respond," BofA notes.
"The majority of Fed officials are likely to believe that these supply constraints are due to temporary bottlenecks from supply-chain issues and other idiosyncratic factors. This will likely lead to a lengthy discussion over inflation risks with the majority arguing that inflation is set to rise in the next few months but that it is very likely to prove transitory. It will be interesting to see how many times the word "transitory" is used," BofA adds.