The head of the U.S. central bank, Jerome Powell, says inflation will probably “remain elevated in the coming months.”

Raising interest rates is the standard way central banks keep a lid on inflation, but the Fed said isn’t ready to do that yet for at least two reasons.

The Fed expects inflation to cool – possibly later this year – and raising rates too early could stall the post-pandemic recovery.

CGTN’s Owen Fairclough reports.