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But in putting its emphasis above all on reviving growth, America's central bank, according to some economists and even a few Fed officials, may face a bigger inflation problem down the road.
Another negative is that TIPS tend to have a higher duration than traditional Treasuries because of their lower real coupon rates and because the cash flows received from TIPS will weigh more heavily toward payments with bigger inflation adjustments made closer to the maturity date.
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But does the big inflation scare make any sense?
What's more, he says, there is "big" inflation and prices go up frequently.
Those who think the big inflation is coming in the United States do not think we will suffer alone.
"Fiscal dominance" — meaning a central bank always buys up government bonds to keep interest rates down — is a recipe for big inflation.
A day later, the President called the Iranian regime "brutal and corrupt," writing, "The people have little food, big inflation and no human rights.
"All of the money that President Obama so foolishly gave them went into terrorism and into their 'pockets.' The people have little food, big inflation and no human rights.
That's the biggest inflation surge in five months.
If big inflation returns and nominal interest rates climb, bonds will get clobbered.
(See: "Europe's Big Inflation Problem") In Britain too, an immediate rate cut looks unlikely.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com