Fed Says It Will Hold Rates Fast Until Mid-2013

More explicit time frame, unusual for central bank, may be aimed at calming investors

WASHINGTON — The Federal Reserve sketched a dim outlook for the economy Tuesday, suggesting it will remain weak for two more years. As a result, the Fed said it expects to keep its key interest rate near zero through mid-2013.

It's the first time the Fed has pegged its "exceptionally low" rates to a specific date. The Fed had previously said only that it would keep it key rate at record lows for "an extended period."

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