Fed's Harker sees 'lack of progress' on inflation, expects more rate hikes.

By The Exchange Team

Patrick Harker, president of the Philadelphia Federal Reserve, said Thursday that increased interest rates have done little to control inflation.

"We'll keep hiking rates for a while," the central bank official said ahead of a speech in New Jersey.

Given our disappointing lack of progress on inflation, I expect we'll be above 4% by year's end.

The latter remark was in reference to the fed funds rate, which is currently set at 3%-3.25%.

Markets predict the Fed to raise rates by 0.75 percentage points in November and again in December.

Harker, a nonvoting member of the Federal Open Market Committee this year, is expected to raise rates in 2023 before stabilising at 4.5%-4.75%.

According to Harker, those higher rates are expected to remain in place for a considerable length of time.