Citizens in the US are feeling the strain of high living costs, putting pressure on the Federal Reserve to take action. The new Federal Reserve president, Kevin Warsh, has pledged to reduce inflation to 2%. Some investors believe the Fed will demonstrate its commitment to this goal by raising interest rates as early as this week.

The Federal Reserve's ability to combat inflation is limited in certain areas, such as supply-driven inflation, and it cannot control external factors like international conflicts or trade policies, as reported by KVIA ABC-7, with further details available from the source.