I don't know where the rates should be. For regular middle class people (not big investors), high rates are good and bad - good because you can grow your savings in CDs or treasuries and not risk all your money in stocks. They are bad because it makes it hard to make big purchases like cars and houses. Those are things that most people care about, so for them it's a balance between the good and bad. Right now, I hear a lot of people complaining about the high rates.
For the overall economy, I am not smart enough to know what the ideal level should be. They left it near zero for so long (to please people who don't need help) and then shot it way up to 5+ due to inflation. I don't know if the current rate is inherently bad but it seems going from 0 to 5+ is a big jump in a short time and now that all the Covid era stuff has calmed down it makes sense to moderate that jump a little bit. That is just my very amateur opinion.