Federal Reserve goal of stopping a recession appearing more and more difficult to achieve

The Federal Reserve Board raised the prime interest rate another three quarters of a point this week (Sept. 21, 2022) in an attempt to slow the rate of inflation.

South Dakota Bankers Association President Karl Adam says the rate hikes so far haven’t had the intended effect.

Adam says there was some expectation this week’s hike would be a full point.

The Fed is trying to slow the economy without dropping the economy into a recession, but Adam says that’s a tough target.

Adam says the impacts of the rate hikes probably won’t be fully felt until sometime next year.

(Story courtesy of news partner WNAX.)