Compassionate Fiscal Policy?

I am skeptical that Adjustable Rate Mortgage (ARM) holders will be able to survive the Fed's consistent increase in interest rates. Will the Fed pause today? I have a feeling they will, but what are their motivations? The ARM is going to become the fickle friend of the real estate speculator as demand softens and rates rise. Should the Fed take into consideration the impact on these individuals? They are looking to head off inflation, but with the real estate market losing its momentum, how many real estate investors should they sacrifice?
It would be interesting to see how many ARMs are tied to first-time homes vs. investment properties. Should we treat differently risk-seeking speculators and risk-ignorant home-owners?