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.

Check out The China Report, our new weekly newsletter. Subscribe here!