Answer: Increase the discount rate.
Step-by-step explanation:
With an inflation rate at that level, it is insinuated that the country is currently overheating and needs to be slowed down.
One way of using Monetary Policy to do this is to Increase the Discount rate. The Discount rate is the rate at which the Fed loans money to the banks in the country. If this rate were to increase thus making it more difficult for Banks to access funds from the Fed, the banks will increase the rates at which they lend money in the Economy as well.
This will reduce the rate at which people are borrowing money as well as encourage more people to invest to take advantage of the higher rates.
These 2 acts will reduce the money supply in the economy and less money in the Economy equals less inflation.
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