The Federal Reserve’s 2% inflation target has been exceeded, signaling a potential hike in rates later this year.

Fed Chair Jerome Powell believes the tight labor market and a 2% inflation increase suggest the central bank may pause interest rate hikes in September.

CME Group data suggests a 90% chance the Fed will hold rates unchanged at its Sept.

Some analysts predict one more rate hike before the year’s end.

Shelter costs remain strong, and energy prices are expected to pressure headline inflation.