Those who think inflation isn't a threat and the Federal Reserve will stay loose are wrong. Those who think inflation is a threat and the Federal Reserve will tighten are wrong. Inflation is a bigger threat than the latter thinks, but the Federal Reserve will ease further to support asset prices and consumption.Also exploding federal budget deficits, and a new housing bubble, leaves both the public and private sector extremely vulnerable to rising interest rates. So as inflation expectations push rates up, the Federal Reserve will crank up QE to push them back down to prevent a financial crisis.