Bank of America Global Research discusses its latest Fed call.

"Our recent forecast revisions showed slightly softer growth and higher inflation, yet we retained our forecast for two Fed cuts this year.

We still expect cuts this year given the Fed's bias to look through supply-driven inflation, a stable but fragile labor market, little signs of wage pressures, and political pressure," BofA notes.

"While risks are tilted towards no cuts, by September, Warsh should be in and have enough evidence of inflation cooling to rally support for a couple of cuts," BofA adds.