SDBA President react to Federal Reserve Board raising the prime interest rate

PIERRE, S.D.(WNAX)- The Federal Reserve Board raised the prime interest rate another three quarters of a point this week. They are doing that to slow the rate of inflation.

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

Adam says there was some expectation that hike would be a full point.

The Fed is trying to slow the economy without dropping the economy into a recession. 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.