3% is still super low historically. Let's wait and see how the economy actually reacts to the rising rates. Back in 2019, the Fed got cold feet and started lowering rates after hitting ~2.5%. The amount of money in the system is also unprecedented. Judging by the reverse repo rate, people are sitting on $2T with nothing to do with it. Maybe higher interest rates will bring that down, but inflation looks like it will remain high for some time.