'Plenty of tricks up their sleeve': Here's what 4 experts think about the Fed's dismal economic forecast and extension of near-zero rates

Federal Reserve Chair Jerome H. Powell announces a half percentage point interest rate cut during a speech on March 3, 2020 in Washington, DC.Mark Makela/Getty Images

• The Federal Reserve's extension of near-zero interest rates was largely expected, but statements from chairman Jerome Powell and new economic forecasts left experts plenty to digest.
• Powell warned of a "long road" to labor-market recovery, while the central bank's first projections since December see historically low rates lasting through 2022.
• Policymakers' cautious tone reminded investors of lasting economic risks and contributed to the stock market's biggest single-day drop since April.
• Here's what four experts had to say about the policy moves and new central bank commentary.
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The Federal Reserve's latest policy update came with few surprises, but cautious tones from chairman Jerome Powell and new economic projections gave experts plenty to pick apart.

The central bank elected to hold interest rates near zero on Wednesday following its two-day meeting. The Fed also pledged to take in at least $80 billion in Treasurys and $40 billion worth of mortgage-backed securities each month to further aid market functioning. Policymakers' first economic forecast since December projected historically low rates lasting through 2022 and unemployment falling to 5.5% over the same period.

"We have to be honest that it's a long road," Powell told reporters in a press conference. "It's going to take some time and we are going to be deploying our tools, all of our tools, in pursuit of those goals."

The gloomy estimates shocked investors on Wednesday and helped drag equities into their biggest decline since April. Investor optimism for a swift economic recovery helped push the S&P 500 and Nasdaq composite to fresh records in recent sessions. When it seemed as though nothing could shake stocks' bull run, the central bank's warnings dragged it to a halt.

Here's what four experts had to say about the Fed's announcement and economic projections.

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