Fed extends forecast on low interest rates WASHINGTON, Jan. 25 (UPI) -- The U.S. Federal Reserve said Wednesday historically low interest rates are likely to be the status quo through "late 2014." The central bank, where a subtle nuance in a memo is the subject of intense scrutiny, had previously said it would likely keep interest rates "exceptionally low" through mid-2013. On Wednesday, it updated that concept, saying the bank's policy-setting body, the Open Market Committee, "currently anticipates that economic conditions -- including low rates of resource utilization and a subdued outlook for inflation of the medium run -- are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014." The news release continues Fed Chairman Ben Bernanke's push toward greater transparency with regard to monetary policy. Historically, the bank moved behind veiled suggestions of what policy makers were planning. Of late, hints have morphed into concrete suggestions. The Fed said it would continue with a program known as an operational twist in which it trades short-term securities in its portfolio with long-term securities, which is expected to keep long-term loans cheap for businesses. Investors can react three ways to the Fed's announcement. The news could already be priced into equity markets, meaning stocks will be only slightly affected. But some could see the news as an admission the economic recovery will remain tepid for an additional 18 months. Others could see it as good news that the Fed will keep lending at zero to 0.25 percent. Barring unforeseeable events, some will conclude that what liquidity is out there will remain intact.