 The American economy expanded at a 1.4% annual pace from January to March, the slowest quarterly growth since spring of 2022. A sign high interest rates might be taking a toll on the economy. The Fed Reserve raised its benchmark rate 11 times in 2022 and 2023 to a 23-year high to try to tame the worst bout of inflation in 40 years. San Francisco Fed President Mary Daly told CNBC the monetary policy is working as it should.