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Patience is the Word

Janet Yellen
Getty Images

"Patience" is the key word. Will the Fed keep it or drop it from its statement tomorrow?

The Players on "Patience"

In its most recent Fed note, Barclay's said, "We expect the Fed to end forward guidance by dropping the patience language from the statement in favor of language that highlights that the economic outlook warrants a gradual removal of policy accommodation."

DoubleLine's Jeffrey Gundlach said he believes "patience" will be eliminated from the statement. Instead he said he thinks it'll be replaced by the word "flexible."

Why all the walking on eggshells? As the dollar strengthens against the euro, U.S. exports are getting more expensive. And with oil dropping to multi-year lows, there are serious concerns the crucial energy sector of the American economy is in long-term danger. With those factors in mind, many economists believe a hike in interest rates is far too risky right now.

Nobody likes to be held hostage by a market
Jim Iuorio
TJM Institutional Services

"To a certain extent the Fed is being held hostage by oil and the dollar/euro market," said Jim Iuorio, managing director of TJM Institutional Services. "I don't think they will tighten in June, but at the very least they will take out the 'patience' word. But they will couch it and bubble wrap it as much as possible to avoid any market shocks."

Watch It All in Real Time: 2PM Wednesday

The Fed starts meeting today.

The announcement comes tomorrow at 2pm followed by Fed Chair Janet Yellen's news conference at 2:30 p.m. eastern. Power Lunch will cover it all in real time and the inevitable and perhaps dramatic market reaction that will follow each sentence.