Economists sees Fed’s near-zero rates lasting til 2023

The U.S. central bank’s balance sheet will surge to more than $10T and the federal funds rate target range is expected to last for three or more years, according to a Bloomberg survey.

More than half of respondents forecast the target range of 0-0.25% won’t move up until at least 2023; 22% say it won’t move up before 2022.

Bloomberg’s poll compiles predictions from 31 respondents collected April 20-23.

The median estimate for the Fed’s balance sheet is $10T and the average is $10.9T; that compares with $6.57T at April 22, bolstered by $1.64T in purchases of Treasury and mortgage-backed securities since March 11.

Top two threats to the post-virus economic recovery are removing restrictions on social distancing and economic activity too early followed by the potential for Americans to stay put once restrictions are lifted.

https://seekingalpha.com/news/3564208-economists-sees-feds-near-zero-rates-lasting-til-2023-bloomberg