This sentence is from GMAT Prep
Many financial experts believe that policy makers at the Federal
Reserve, now viewing the economy as balanced between moderate growth and low inflation, are almost certain to leave interests rates unchanged for the foreseeable future.
A. Reserve, now viewing the economy as balanced between moderate growth and low inflation, are
B. Reserve, now viewing the economy to be balanced between that of moderate growth and low inflation and are
C. Reserve who, now viewing the economy as balanced between moderate growth and low inflation, are
D. Reserve, who now view the economy to be balanced between that of moderate growth and low inflation, will be
E. Reserve, which now views the economy to be balanced between moderate growth and low inflation, is
I am curious about the use of 'as'. 'as balanced' -> ?? I thought that as should be in the structure 'as + Clause'. whenever it does not play as a function sentence. (As I use 'as' here.

)
but I have no idea with as believed ----> how is it correct.
Moreover the v.ing 'viewing' in the clause seems to modify policy makers, but is it not an error since it should modify the subject of the clause and there's no clause before it other than 'Many financial experts believe that'. So it should modify Many financial experts believe that.
Thank you this is so confusing.