Interest rate hikes are the primary monetary policy tool used by central banks to tackle spurts in inflation. Interest rate hikes are the primary monetary policy tool used by central banks to tackle spurts in inflation. The Fed will be forced to capitulate on its ‘entrenched’ theory of inflation. While Fed officials voted unanimously to hold rates steady in June, most estimate that the federal funds rate will top out at a range of 5.63-5.87% in 2023. That indicates there could be at least one additional rate hike in 2023, but most likely more, depending on the size of each increase.