Fed's Harker wants to see rates above 3.4 per cent and then 'sit for a while'

A top US central bank official said on Thursday that he wanted monetary policy to move into restrictive territory with the Fed funds rate above 3.4% and that interest rates would need to be kept at that level for a while.

In remarks to broadcaster CNBC, the head of the Federal Reserve Bank of Philadelphia also said that the Federal Reserve must bring inflation under control, Dow Jones Newswires reported.

Harker was unsure of how large September's rate hike would be, but added that he saw glimmers of hope on inflation and that there wasn't a high risk of a sustained and deep recession.

He also noted that by historical standards even a 50 basis point interest rate hike was "large".

The Philly Fed boss was not a vote wielding member of the Federal Open Market Committee in 2022.