[quote=KIBU]My question to all of you is how long do you think the Fed can keep rates this low: months, years ???[/quote]
Years. Rates were near zero in Japan for years and years.
[quote=KIBU]Anyway, what’s your opinion on when or what factors will make the Fed having to abandon this bottom rate and increase the rate. After all, come back kid Voelker is coming back. [/quote]
Volker is unlikely to do things significantly different until the situation changes significantly. Volker occasionally spoke out against the government’s policies when the bubble was building but I doubt he is against the low interest rates now that things have gone to hell in a handbag.
The only thing that will cause the fed to change course is if hyperinflation kicks in, or foreign central banks revolt. While both could happen sometime in the future, at this point neither looks likely in the immediate future. My hunch is it will be years before we see a real change in fed policy.
