I think you've got the cause and effect backwards.
If X dollars buys 1.2 times more stuff in the future (deflation) you will hoard your dollars and deprive the economy of them.
If X dollars buys 0.8 times more stuff in the future (inflation) you will buy things now and make investments.
The Fed isn't optimizing for people wanting mortgages today, it does controlled burns to try and prevent medium-term calamity. Look up the Volker shock, where rates were hiked beyond 20% to trigger recessions because inflation was above 10%.
Comments
I think you've got the cause and effect backwards.
If X dollars buys 1.2 times more stuff in the future (deflation) you will hoard your dollars and deprive the economy of them.
If X dollars buys 0.8 times more stuff in the future (inflation) you will buy things now and make investments.
The Fed isn't optimizing for people wanting mortgages today, it does controlled burns to try and prevent medium-term calamity. Look up the Volker shock, where rates were hiked beyond 20% to trigger recessions because inflation was above 10%.