The news indicates that inflation is ebbing slightly. The markets rejoice. Wealthy people with money in the markets breathe a sigh of relief, and resume spending. Inflation goes up. The Fed raises interest rates. Markets slump. Inflation drops. We begin again.
The bottom line here is that, to the extent the Fed has any real control over spending that is fueled by the savings of the affluent, not borrowed money, it will be relying on its ability to crush confidence by driving down the markets. That probably means interest rates will have to rise to a level beyond what the fundamentals would say are necessary to put an end to the cycle.