Bank of America Global Research discusses its expectations for the Fed policy trajectory in light of yesterday's FOMC policy decision.

"In our outlook for monetary policy, we continue to look for two additional 25 basis point rate hikes, bringing the terminal policy rate to 5.0-5.25% in May. Our view that a hike in May is more likely than not comes from our view that underlying demand, while moderating, remains resilient enough to keep the economy in expansion...Hence, we think there is enough momentum in place to keep the Fed hiking two more times," BofA notes. 

"That said, as we noted above - and heading into the meeting - risks around our policy rate path have become much more balanced and, following the February press conference, likely skewed in the direction of a lower terminal rate. We await Chair Powell's public remarks next week as to whether we and financial markets, which generally heard the same message we did, are accurate in our assessment," BofA adds.