Federal Reserve To Keep Interest Rates Near Zero

The Federal Reserve announced its plan on Wednesday to keep short-term interest rates near zero through late 2014. The move signals that the Fed does not expect the economy to fully recover over the next three years. With unemployment still running high, the Fed expects the economy to expand between 2.2 and 2.7 percent over this year, instead of at 2.9 percent as originally projected. Kelly Evans writes the “Ahead of the Tape” column for The  Wall Street Journal.