Fed: Don't Expect Rate Hikes Until 2014

The Federal Reserve assured consumers and businesses today that they'll be able to borrow cheaply well into the future. The Fed said it's unlikely to raise its benchmark interest rate before late 2014, extending its time frame by at least a year and a half. The Fed said record-low rates are still needed to help boost an improving but still sluggish economy.

Stocks, which had traded lower all day, quickly recovered their losses. The Dow Jones Industrial Average, which had been down about 60 points before the announcement, ticked into positive territory shortly after it. The Fed said in a statement after its two-day policy meeting that the economy is growing moderately, despite some slowing in global growth. It held off on any other new steps to boost the economy. (More Federal Reserve stories.)