What did the Federal Reserve do to try to reduce inflation?

The Federal Reserve (the Fed) uses various tools to reduce inflation. One of the key methods it employs is adjusting the federal funds rate, which is the interest rate at which banks lend to each other overnight. By raising the federal funds rate, the Fed makes borrowing more expensive. This higher cost of borrowing tends to slow down consumer spending and business investment because loans for things like houses, cars, and business expansions become more expensive. As a result, the demand for goods and services can decrease, reducing the pressure on prices to rise, and thus helping to bring down inflation.

In addition to rate hikes, the Fed can also use other methods such as increasing the reserve requirements for banks (which reduces the amount of money they have available to lend), or conducting open market operations (buying or selling government securities to influence the level of reserves in the banking system).

The Fed typically aims for a balance where inflation is under control, but the economy isn't slowed down too much. It's a delicate balance, and the effects of the Fed's actions are not immediate, often taking months or even longer to be felt in the economy.