Federal Reserve Board has raised interest rates

WASHINGTON, D.C.(WNAX)- The Federal Reserve Board raised the prime interest rate a half point this week.

Karl Adam, President of the South Dakota Bankers Association, says its part of a strategy to slow down inflation.

Adam says he expects the Fed to continue rate hikes for the next several months.

Adam says raising interest rates should slow demand across the economy.

Adam says the Fed will have to balance rate hikes and the money supply to avoid a recession in attempting to throttle back inflation.