It is all a big mess. Inflation or no inflation, the interest rates have no business to be this low. Contrary to popular belief, lack of economic growth should increase the interest rates rather than otherwise. Imagine that a guy is unemployed and and everyone is rushing to lend him money at a low interest rate, now would this not be funny? The same is the case, uncle Sam is broke and unemployed or underemployed and hence must pay higher rate for the loans. Federal reserve is on a collision course; they can neither increase the interest rates nor decrease the balance sheet size.