The interest rate vs. money balance (Creative Commons)

Short-term interest rates will most likely stay close to zero through late 2014, according to Federal Reserve officials Wednesday.

After two days of meetings, the Fed announced it will likely push back the timing of an interest rate hike until late 2014, 18 months later than it said it would in previous statements. 

However, according to the Washington Post, the Fed is making its "best guess" as per when it might hike up the rates. 

According to the Post:

"The Fed chairman made clear during a news conference Wednesday that the decision to leave interest rates unchanged for three more years was not ironclad.

"The central bank’s ability to forecast that far out is limited, Bernanke says, and the Fed could adjust the timetable for when it will raise rates if economic conditions change.

"Still, he said the U.S. economy remains weak and all signs suggest the Fed won’t change its record-low rate for another three years."

The central bank has already kept its rate near zero for three years. 

At the same time of the interest rate pronouncement, Chairman Ben Bernanke also said the Fed is considering more bond buying to boost growth. 

Pre-news conference, the Fed forecast the economy to grow between 2.2 percent and 2.7 percent in 2012. It also expects unemployment to fall as low as 8.2 percent. 

Upon the announcements, stock prices rose and the dollar tumbled against major rivals.