Economics

Fed’s Near-Zero Rates to Last into 2023, Economists Predict

  • Balance sheet seen expanding past $10 trillion level
  • Central bank receives high marks on programs, communication

Photographer: Andrew Harrer/Bloomberg

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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 surveyBloomberg Terminal.

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.