Interest Rates Edge Higher

The Federal Reserve has raised base interest rates by a quarter percent with the promise of more rate hikes in the future. Typically, inflation is the reason the Fed raises interest rates. Dr. Matt Roberts of the Kernmantle Group says there is confusion on these Fed decisions since inflation is not an issue. “One could argue the Fed has been doing a good job in keeping inflation under control. I think one thing that isn’t talked about is the idea of reloading the gun. The Fed wants to have interest rates high enough that when this economic expansion ends and next recession begins, interest rates are high enough to be able to be lowered.” Roberts spoke Thursday at the North Dakota Bankers Association Ag Credit Conference in Fargo. Roberts said trade is and will be the single biggest threat to agriculture.