The US Federal Reserve is expected to raise its benchmark overnight interest rate by 25 basis points to 5.25%-5.50% on July 26, with a majority expecting it to be the last hike of the current tightening cycle.

The strong economy and record low unemployment have left analysts and investors puzzled over a year after the Fed launched its most aggressive rate hiking campaign.

Inflation fell to 3.0% in June from 4.0% in May, causing many Wall Street analysts to believe inflation might be contained.

The question is whether more rate hikes are needed to maintain “disinflation” or if they will hurt the economy.

Fed Chair Jerome Powell and other central bank officials have suggested more tightening is coming due to persistent underlying inflation.

The number of respondents polled who projected at least one rate cut by March next year dropped substantially to 55% from 78% last month, suggesting that rates will stay higher for longer.

The dollar fell to its lowest level versus major currencies in almost a year on expectations the Fed is nearing the end of its raising cycle.

Experts worry inflation may not fall fast enough, with 20 of 29 respondents predicting core inflation would continue at or near 5% by year’s end. The real battle begins now, as the easy base effects are now behind us.