Federal Reserve raises interest rates to their highest point in 16 years

Published: Sunday, May 7, 2023 - 10:32pm

The Federal Reserve raised interest rates by a quarter of a percentage point last week. It’s the highest level in 16 years.

Scottsdale-based economist Danny Court said he believes the Fed is properly managing rates.

“Yes it’s high. It will actually give the Fed some ammunition to battle a recession or a slow down because they can start to lower the rate to try to stimulate the economy. But for now, they’re just on this course that we believe is proper,” he said.

Court also said the rate sets a floor for borrowing costs, but if the economy goes into recession in the latter half of the year—as some analysts are predicting—mortgage rates could decline.

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