Answer: selling
Explanation: Inflation measures increases in price levels over time of a basket of goods and services. It is a quantitative value that shows that increases in price levels will lead to the currency of a country being worth less, thus buying less than it did in previous periods. In an inflationary period future prices of these goods and services will be worth more than what they are worth today.
In an effort to combat this, the Federal Reserve can try to control inflation by utlising the monetary policy, more specifically contractionary monetary policy. This tightens the money supply that is available, slowing down economic growth.
One of the tactics the Fed uses to implement a contractionary monetary supply by selling securities. When it does this Fed drives the banks to buy these securities. This decreases the banks' available capital, which means they have less cash to borrow to consumers. Because of this they can then charge higher interest, slowing down economic growth, effectively lessening inflation.
