Hindering economic growth is inflationary. The funds rate needs to be brought down to market levels.
Doing that will create inflation,and that will wreck teh economy. NO BANKER BAIL OUTS!!!
I don't see that interest rates are all that high. You can still get a mortgage in the 6% range. When we bought our first house in 1986, we had the low interest rate of 8%. It's been much worse at other times.
When interest rates are low, consumers tend to overextend themselves and save less. Low interest rates do increase demand, temporarily boosting economic growth. Increased demand for dollars and a reduction in savings should automatically drive up the price of borrowing, but the Fed prevents that to some extent. Eventually, people run out of things to buy or the ability to meet debt obligations. Then, there's hell to pay.