Do you thinh US FED FUNDS RATE will rise up or fall down in the next 2 or 5 years???

Question

AND WHY????

Answer 1

next 2 years:  prolonged recession will keep fed fund rates low over the next year or two...fed funds rate stays about the same...maybe up a small amount.

Next 5 years:  decline in value of the dollar combined with increased demand for oil and other commodities from developing economies will increase inputs and prices, creating inflationary pressure.  Moreover, declining value of dollar will increase demand for US goods and will push employment upwards creating potential for upward pressure on wages.  Fed funds rate will increase to compensate for inflationary pressure and dampening effect on economy will be mitigated by increased demand for US goods from cheaper dollar.

Answer 2

Some people say that what's happening now in the US economy is similar to what happened in the Japanese economy after its real estate bust.  And if this comparison turns out to be accurate.  Then the US Fed rate may stay close to zero for a long, long time.