Does anyone else find it extremely strange that the Fed has lowered the cost of money for 5 straight months while inflation is still 4%?

It's not in their economic models because they didn't anticipate a situation like this. However since they lowered the cost of money 5 times in a row and inflation is still 4%, it's very clear where this is headed. Rates are going to be negative soon.<br><br>A time of 4% inflation with negative loan rates will create an era of unprecedented financial and political instability. It's going to be the perfect storm.<br><br>The price of loans will be negative meaning a family can literally make money by taking out a mortgage for a house since 4% inflation will increase the value of your asset by 4% per year while you paid 0% for the mortgage.<br><br>I guarantee you the Fed is going to increase taxes, and disallow loans from being deductible a la a tax shelter. This is going to be a complete disaster for small business owners and will create a huge wealth gap as the rich are the only ones that can afford the cost of money to pay for a house.<br><br>Rent and housing costs are going to skyrocket. There will be a huge demand for houses because it costs nothing to buy a house so there will be a huge shortage of houses with a huge demand so prices will skyrocket. Goodbye middle and lower class.<br><br>The rich are going to be able to get loans with negative interest rates and will invest their money into commercial real estate like office buildings and strip malls and other retail spaces that your small business owner could never afford if he could even afford a loan. As other companies are pushed out, these large companies will have a monopoly over the supply chain and will be able to increase prices to absurd levels and you won't even have a choice where to go.<br><br>This is not a situation we have ever seen. How is this going to play out?<br><br>Is this a situation we have seen before?