If the Fed were to claim it can set NGDP to some percentage, then traders will set the term loans t match match the rate.
Say the target was 2%.which happened t be the ten year rate. Then deposits and loans would all be ten year instruments, or just under. The Fed is just declaring the curve will be liquid a market term point determined by the market.
Consider a shock, like covid, and external factors reset the term structure. At the given NGDP target the deposits and loans will simply set a longer term, and every one will bet with instruments having the new term.
So what is causing NGDP growth? NGDP-RGDP represents the skew in supply and demand arbitrage opportunities. A continuing increase in NGDP means some supply/demand issues are consistently growing worse.
Here is Beckworth's paper on expected NGDP, what to forecaster think will happen. They all seem to suggest more borrowing activity, always. They were mostly correct up to 2008.
What happened in 2008 besides the crash? Fed taxes, making sure government was liquid enough to cover its known shortages. Why did NGDP drop on the covid crisis? Well, it really recovered quickly and i think we had a sampling error. Ignoring the sampling error, we know Fed taxes took a huge jump.
Taxing people for what they vote for reduces government imbalances.
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