By Peter Coy

The Federal Reserve voted Nov. 4 to continue administering the strong medicine of cheap money to the feeble U.S. economy, even though that medicine is having undesirable side effects, including a speculative surge in the price of gold. Fed rate-setters voted unanimously to keep the federal funds rate at a rock-bottom range of zero to 0.25%. And they gave no sign that they're going to raise rates any time soon.

"Inflation will remain subdued for some time," the Fed said in its Nov. 4 statement, adding that weak conditions "are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

The Fed's decision, while expected, was not easy. On the positive side, near-zero interest rates...