Perhaps you are right, but I do not understand why the target rate of ~1% vs. the 2-3% that is considered healthy. Why not zero or negative? How about some serious and unadulterated deflation?
Debt becomes deflationary when the holders of that debt can no longer pay because 1) trend inflation expectations are already baked into the contract and they end up owing more than what they expected to pay and 2) because of the consequences of tightening causes them to lose income. Disinflation and deflation make that a reality. The Fed was created to regulate it, not cause it which it apparently did when it felt that 1% inflation was better than 2 or 3%.
I want to know why. Don’t you?
The Fed has less power to create prosperity and growth than you’ve been led to believe.
It’s a fiction to pacify the masses.
Google “Irving Fisher” and “debt deflation.” There is a paper of hos from 1935 I think you should read to understand the larger picture. One of the first hits Google will give you for Fisher’s paper will be out of the St. Louis Fed.
Then there is a short paper by Hyman Minsky I will try to find a URL to for you. If I cannot find a location for it, I can forward it to you directly.