Indeed, the current shape of the yield curve suggests that investors expect short-term rates will eventually be in the neighborhood of 4 to 5 percent.
This expected rate is not unusually low by historical standards; it is near or even above the expectations during the low-inflation period of the 1950s and early 1960s, and it is well within the range of expectations since the mid-1990s. The yield curve implies a fairly gradual transition to those long-run levels, and some could argue that this implied adjustment is too gradual.