The head of the US Federal Reserve, Jay Powell, has warned that the country’s central banking system could return to higher interest rates in a bid to tackle inflation, the Financial Times reports.

The paper says the comments led to 1% falls on both the S&P 500 and the Nasdaq share indexes and traders are now expecting a half-point rise when the Fed meets later this month.

The front page also reports on the EU demanding Elon Musk to hire more staff to moderate misinformation on Twitter.