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Economy’s slow rebound from coronavirus free fall will keep Fed on hold until 2022

It took days for the novel coronavirus to send the U.S. economy down a devastating free fall, prompting the Federal Reserve to slash interest rates to zero.

But it could potentially take years for growth and unemployment to return to where they were before the pandemic, leaving the Federal Reserve on the sidelines for about two years, according to the nation’s leading U.S. central banking experts.

SEIA’s chief investment officer, Deron McCoy, along with other financial and economic experts surveyed for Bankrate’s April Fed Forecast say the U.S. central bank is most likely going to keep its rate hike plans on the shelves until 2022. Nearly a third (or 29 percent) say the Fed won’t get back to lifting borrowing costs until 2023 or beyond, while 18 percent say the soonest move could happen next year.

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