By JON HILSENRATH
The Federal Reserve opened a door to raising short-term interest rates by midyear, but signaled it’s in no hurry to walk through it.
The Fed, in a statement Wednesday after its two-day meeting, dropped an assurance that it would remain “patient” before acting on rates. In the odd parlance of central bankers, the shift meant the Fed would consider raising short-term rates at its June 16-17 meeting.
Because the unemployment rate has fallen to 5.5%, many Fed officials believe the economy is getting closer to a point where it can manage without the fuel provided by historically low borrowing costs. That has them looking toward gradually nudging interest rates higher.
Yet comments by Fed Chairwoman Janet Yellen after the meeting and new central bank forecasts suggested the Fed intends to proceed cautiously. It isn’t yet set on raising rates in June, and once it starts it now sees a smaller succession of increases in coming years than it did just three months ago. That is in part due to low inflation.
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