cacunn has got to be right about what is repeated, but the pattern is not very well written. You cannot repeat (I just noticed it doesn't say "repeat" the rows, but "continue working using these 2 rows) those 2 rows until 14 sts remain (besides there are 4 rows given) but you can't repeat the first one. There are not enough stitches anymore to do that. What they mean (evidently) is to keep working in the same manner until you have 14 sts on each side to knit. I think they are not considering the 2 stitches on each side that are kept in garter stitch when they say "until 14 sts remain on each side to knit".
I think you only need to repeat the manner you have been doing it one more time to have 14 on each side (omitting the garter), so why didn't they just say so.
So after you do the rows as given the next row would be:
K2, k14, (K2tog) 4 times, k14, k2.