ForexTV   |  June 20 2012 10:06 EDT

*Live Broadcast of Federal Reserve Chairman, Ben Bernanke at 2:15 ET, Wednesday, June 20; Following the FOMC Decision on Interest Rates to be released at 12:30ET [WATCH VIDEO AT BOTTOM OF THIS PAGE]

The U.S. Federal Reserve's Federal Open Market Committee (FOMC) statement is the primary tool the panel uses to communicate with investors about monetary policy. It contains the outcome of the vote on interest rates, discusses the economic outlook and offers clues on the outcome of future votes.

The FOMCis likely to reiterate a statement that subdued inflation and economic weakness will probably warrant “exceptionally low” interest rates through at least late 2014. According to a Bloomberg poll, 89 percent of economists surveyed shared this view. The statement is set for release at around 12:30 p.m. in Washington. Sixty percent said the Fed probably won’t start a third round of large-scale bond purchases, or quantitative easing.

According to Bloomberg:

The Fed reduced its benchmark interest rate almost to zero in December 2008 and later bought $2.3 trillion in securities in a bid to push longer-term borrowing costs lower. In January, it said it would keep rates near zero at least through late 2014, extending an earlier pledge of mid-2013.

The Fed started Operation Twist in September. Unlike with quantitative easing, the program doesn’t increase its balance sheet. Instead, the Fed sells short-term debt and uses the proceeds to buy longer-term bonds. By keeping its assets stable, the Fed can more easily “exit” from record accommodation when the time comes.