When interest rates are low, demand for loans goes up. bank loans are money printing, so the supply of money increases. When the supply of money increases, each unit of currency is less valuable because there is more of it, so prices rise - more units of currency are needed to achieve the same value (Quantity Theory of Money).
how-inflation-prices-and-interest-rates-connect
- Monetary Policy
-
Federal Funds
Lower interest rates -> economy grows, inflation increases (because people can borrow more and spend more and how-inflation-prices-and-interest-rates-connect)