Fed unlikely to raise rates until at least 2014.

Fed unlikely to raise rates until at least 2014
By Martin Crutsinger
AP Economics Writer / January 25, 2012

WASHINGTON—{snip}.

The Fed pushed back the earliest date for any likely increase in its benchmark interest rate by at least a year and a half, until late 2014. It said record-low rates are still needed to help boost an improving but still sluggish economy.

The central bank said in a statement after a two-day policy meeting that the economy is growing moderately, despite some slowing in global growth. It held off on any further bond-buying programs to try to increase growth.

The Fed described inflation as "subdued." That was a more encouraging description than it offered last month, when it said inflation had "moderated since earlier in the year." A more positive outlook on prices gives the Fed more room to keep rates low.

Treasury yields fell on the news. Lower yields could help further reduce mortgage rates and possibly boost stock prices as investors shift out of lower-yielding Treasurys.