I know the Bank of Canada better (econ prof from there) than the Federal Reserve. Their goal is to keep inflation at ~2%. Basically there are only a few tools

I know the Bank of Canada better (econ prof from there) than the Federal Reserve. Their goal is to keep inflation at ~2%. Basically there are only a few tools they use, money supply and interest rates. It is hard to bet on when inflation will become a concern and to what level. Banks are already betting on it happening with their 5 year fixed rates increasing before the actual rate has changed. But it comes back to the point that if rates do skyrocket within 5 years at the end of your fixed term you could be stuck with a house lower in value than you purchased it and monthly rates you can't afford.