Fox News has now posted a retraction and apology for the piece with the fabricated Kerry quotes ...

Earlier Friday, FOXNews.com posted an item purporting to contain quotations from Kerry. The item was based on a reporter’s partial script that had been written in jest and should not have been posted or broadcast. We regret the error, which occurred because of fatigue and bad judgment, not malice.

The only retraction doesn't name the reporter in question, Carl Cameron, which was noted in the statement Fox News gave TPM this afternoon.