What it means if Fed no longer says it’s ‘patient’ on rates

FILE - In this Feb. 24, 2015 file photo, Federal Reserve Board Chair Janet Yellen testifies on Capitol Hill in Washington. The Fed this week is expected to drop “patient” in describing its approach to raising interest rates from record lows _ a signal that a rate hike is coming as soon as June. (AP Photo/Susan Walsh, File) FILE - In this Feb. 24, 2015 file photo, Federal Reserve Board Chair Janet Yellen testifies on Capitol Hill in Washington. The Fed this week is expected to drop “patient” in describing its approach to raising interest rates from record lows _ a signal that a rate hike is coming as soon as June. (AP Photo/Susan Walsh, File)

By Associated Press March 16, 2015 5 min read

WASHINGTON (AP) – For the Federal Reserve, patience may no longer be a virtue.

Surrounding the Fed’s policy meeting this week is the widespread expectation that it will no longer use the word “patient” to describe its stance on raising interest rates from record lows.

The big question is: What will that mean?

Many economists say the dropping of “patience” would signal that the Fed plans to start raising rates in June to reflect a steadily strengthening U.S. job market. Others foresee no rate hike before September. And a few predict no increase before year’s end at the earliest.

Complicating the decision is a surging U.S. dollar, which is keeping inflation far below the Fed’s target rate and posing a threat to U.S. corporate profits and possibly to the economy. A rate increase could send the dollar even higher.