realistically, the economy cannot suffer the Fed cutting the rates again, which is why they have quit that policy and have held it constant recently. So in theory, the Fed's rates can only go up, and banks tend to tie savings account interest (at least somewhat) to the Fed rate's ups and downs.
That said, however, our economy is in a sticky place... Inflation prevents Fed rates from coming down, but the suffering economy warns against it being brought up. So on that count, it's anybody's guess.....
I wasn't good in my economics class (figures, huh? here I am as one of the more "financially stable" posters
), but I know the government has other means besides the Fed rate to influence the economy..... does anyone understand it better who can explain those things, and perhaps the likelihood (and potential effectiveness) of those processes being utilized?
In either case, I think if any change occurs, rates are going to
very slowly begin to rise. Personally, 5% is a very nice guarantee if you don't plan on needing the money within those 12 months.