As I have been writing for weeks the Fed wants inflation to average 2% over an unspecified long period of time. And for the last 10 year inflation as measured by the PCE, the Fed's favorite measure of inflation, has averaged just 1.5%. Thus, will the Fed allow inflation to hit 2.50% for 10 years?
I read an article written by Michael Lebowitz and Jack Scott who described how the Fed could create inflation. With higher loan defaults and more money being saved by consumers this is causing inflation to drop, which the Fed does NOT want. Second, the Fed wasn't able to create inflation after the Great Recession because banks did NOT lend their money from the Fed. Instead these trillions of dollars sat at the Fed "collecting dust"/earning miniscule amounts of interest.
So, what does the Fed do this time to create inflation? Michael and Jack write that the Fed could lend directly to borrowers and in a way they are already doing so by buying the debts or bonds of large companies.
Just remember inflation or the fear of higher inflation will cause mortgage rates to RISE! So, act NOW!!!