The Federal Reserve may hold interest rates near zero for three or more years, and its balance sheet will soar above $10 trillion as policymakers seek to revive the U.S. economy from recession, economists said in a Bloomberg survey. Just over half the 31 respondents to an April 20-23 poll predicted the target range for the federal funds rate, now at 0-0.25%, won’t move up until at least 2023. Another 22% said not before 2022. …
Respondents had limited expectations for any substantial changes when the Federal Open Market Committee holds its next policy meeting April 28-29. Large majorities, 90% and 87%, said they didn’t expect policy makers to offer any additional guidance on how long they intend to keep rates near zero, or on the future pace of large-scale asset purchases.
(Read more: The Bond Buyer)
