South Dakota Bankers react to the Federal Reserve raising interest rates

PIERRE, S.D.(WNAX)- The Federal Reserve Board raised base interest rates this week another quarter point. The prime rate is now seven and three quarters percent.

South Dakota Bankers Association President Karl Adam says the quarter point hike was kind of a relief after last year.

Adam says bankers are anticipating more rate increases this year.

Adam says many banks are seeing the downside of rising mortgage rates.

The rate hikes are meant to slow the inflation rate which was reported at six and a half percent in January.