Fed Expected to Keep Raising Rates Until Inflation Cools

The Federal Reserve is expected to continue raising interest rates despite some disinflationary signals, as core PCE inflation remains elevated above 3%. While modest near-term inflation increases are anticipated, the Fed is taking a cautious approach and will base decisions on multiple upcoming economic data points rather than any single report. The central bank may implement 'insurance hikes' if inflation stays high and the labor market remains stable.