Charles Plosser, the president of the Philadelphia Federal Reserve, on Friday said the central bank should stick with the federal funds rate, rather than interest on reserves, as its main monetary policy tool as it looks to raise rates from record lows.

The Fed has considered using its ability to pay interest on reserves as the main prong of its exit strategy. The policy would work by setting a floor for overnight interbank rates as there would be no incentive for banks to lend to their