Here is one analysts opinion.

When will inflation begin?

The Fed has painted itself into a corner. When the economy finally picks back up (despite the Fed instead of because of it) the Fed will be in a "catch 22".

They will feel the need to raise interest rates to slow price inflation, but to do so will blow up their balance sheet as well as blow up the US balance sheet because any significant increase in interest rates the US has to pay on roll over debt will soon swamp its ability to generate revenues through taxes.

The Fed will be in the uneasy position of either letting inflation run rampant or blowing up its own and the US balance sheets.

It is my opinion that letting inflation run will be considered by the powers that be to be the lesser of two evils.

Such is the life of a credit expansion bubble.

John