Local bankers react to latest Fed hike

Federal Reserve Chairman Jerome Powell announced Wednesday that for the second consecutive month interest rates are being raised 75 basis points, saying, "we're going to get our policy rate to a level where we're confident inflation will be moving down to 2%."

Robbie GuardMRV Banks

MRV Banks's Robbie Guard said he is concerned with the timing. "While raising the fed funds rate will slow down the economy, I question doing so in such a quick manner. I don't believe (the Fed) has allowed adequate time to see how much the economy has been impacted by the first two hikes," Guard said. MRV has two locations in Cape Girardeau and one each in St. Genevieve, Festus and St. Charles, Missouri.

Phil MooreBanterra Bank

Phil Moore of Banterra Bank — with branches in Cape Girardeau and East Prairie, Missouri — said he understands controlling inflation is in everybody's best interests.

"Unfortunately, (this) is going to cost borrowers more money and likely will slow economic growth. The next 18 months will be challenging for everybody, including the banking industry," he said.

James P. LimbaughMontgomery Bank

Montgomery Bank's James P. Limbaugh said he is skeptical the latest rate hike will be effective.

"There are so many mixed signals in the economy right now that nobody knows who's on first. I don't think the Fed increasing rates is going to have much of a deterrent for inflation, not in the short term. I just don't see that happening," he said.

Family-owned Montgomery Bank, headquartered in Sikeston, Missouri, also has two branches in Cape Girardeau and another in Jackson.

The U.S., as of last week, has recorded two consecutive quarters of negative growth, the traditional definition of a recession.

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