WASHINGTON—The Federal Reserve announced on June 16 that it would keep U.S. interest rates near zero as “risks to the economic outlook remain.” The central bank made a significant revision to its short-term inflation forecast, reflecting large spikes in consumer and producer prices caused by the supply-chain bottlenecks and strong household demand. “Progress on vaccinations has reduced the spread of COVID-19 in the United States. Amid this progress and strong policy support, indicators of economic activity and employment have strengthened,” Fed officials said in a revised statement. “The path of the economy will depend significantly on the course of the virus. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain.” Following a two-day meeting of the Federal Open Market Committee (FOMC), the U.S. central bank announced it would hold the federal funds rate at a range of …