How do low interest rates and the Federal Reserve cause inflation?

Read:
http://en.wikipedia.org/wiki/Federal_funds_rate
and read:
http://en.wikipedia.org/wiki/Open_market_operations


If you want the summation without all the how it works stuff.  Banks are required to have a certain amount of money in reserve,  depending on how much they have lent out.  To increase their reserve of cash they themselves get loans by selling government bonds for cashmoney.  The federal reserve prints money to buy these government bonds, buying enough so that supply and demand set the interest rate on the loan to what they decide the target rate is.  Very low interest rates means the fed is giving money to the banks at very low interest rates, allowing them to profit buy simply turning around and loaning that money to other people at a slightly higher interest rate.  Yes, the fed kinda gets screwed in this deal, because the money they recieve from interest on the bonds does not make up for the money they would lose if one of the banks they were lending to fails.  This is all okay though because the fed can print an infinite supply of money and the government will always be there to bail out the banks.