Question

what did the federal reserve do to try to reduce inflation?
allowed interest rates to fall
allowed interest rates to rise
instituted price controls
done

Explanation:

To reduce inflation, the Federal Reserve uses contractionary monetary policy. Raising interest rates discourages borrowing and spending, which slows down economic activity and reduces upward pressure on prices. Allowing rates to fall would stimulate the economy and worsen inflation, and the Fed does not institute price controls (this is typically a fiscal/government policy tool).

Answer:

Allowed interest rates to rise