Investor Warren Buffett says he thinks the Federal Reserve will have a hard time raising interest rates significantly while Europe continues to struggle.

Buffett discussed the outlook for rates during an interview on CNBC Monday after answering questions in front of more than 40,000 people at Berkshire Hathaway's annual meeting Saturday.

Buffett says he expected interest rates and inflation to be much higher by now as a result of the steps taken to revive the economy after the Great Recession.

Buffett says he was wrong about rates so far, but he doesn't think U.S. rates will increase much while Europe's interest rates remain so low.

Raising U.S. rates now, Buffett says, would make the dollar even stronger and hurt U.S. exports.