Harker: slow progress in controlling inflation, the Fed needs more rate hikes

On Thursday, Philadelphia Fed President Patrick Harker said that rate hikes have done little to control inflation, so the Fed needs to raise rates more.

"We're going to continue to raise rates for a while." He said, "Frankly, given our disappointing progress in keeping inflation in check, I expect the federal funds rate to be well above 4% by the end of the year."

He believes the Fed will stop raising rates by sometime next year, when it will remain within a restrictive rate for a period of time and let monetary policy work.

The market expects that the Fed will still raise rates again by 75 basis points in November.