Fed To Hold Interest Rates Low Until Mid 2013

Washington, DC, Aug. 10, 2011 -- The Federal Reserve said it will hold interest rates near zero until the middle of 2013.

It was an unprecedented move for the Fed to put a time frame on interest rate policy.

In making the announcement, the Fed suggested the economy would continue to grow slowly for the next several quarters.

In wake of the announcement, there has been widespread speculation that the Fed would begin another round of stimulus, known as quantitative easing, sometime in the next few months.