The Fed keeps talking about containing inflation. If they are serious, and not lying, then they will keep raising interest rates to contain it. They state the tight labor market raises inflation concerns, so they must keep raising interest rates.

They also must keep interest rates high to keep foreign investors and central banks interested in buying dollars, T-bonds.

Furthermore, they don’t care about a housing bubble collapse. They’ve pretty much said so (“we think the impact will be negligible”, “we can’t predict asset bubbles”). Their rich friends won’t be hurt when housing busts, so why should they care? It’s more important to keep dollars flowing into the country than to keep Americans out of bankruptcy. Besides, anyone who bought more than 5 years ago won’t lose money, unless they sell. Housing will eventually go back up. They didn’t bail out anyone when the stock market tanked. Economic cycles happen.