The market might be overestimating the likelihood of future rate hikes. Currently, the market expects the Fed to raise rates four times over the next year, each by 25 basis points, pushing rates to around 4.6%. Rising energy prices have sparked inflation concerns. Traders are also expecting the European Central Bank to hit 3.25% and the Bank of England to reach 4.75%. Reuters' analysis suggests that market expectations might be overdone, as underlying inflation remains relatively manageable, and high energy prices could ultimately weaken economic growth rather than trigger sustained inflation.