Question

How does the Federal Reserve manage inflation?

Answer 1

When inflation is too high, the Federal Reserve typically raises interest rates to slow the economy and bring inflation down. When inflation is too low, the Federal Reserve typically lowers interest rates to stimulate the economy and move inflation higher.
Raising interest rates increases the costs of borrowing, and that reduces inflation by slowing the economy. When rates go up, fewer people take out loans for things like buying a home or starting a business. In theory, as demand slows for homes, employees, and other goods and services, prices will fall.

Answer 2

Step-by-step explanation:

Remark

You mean now, or before?

Now they are creating a recession which does nothing to control inflation which is their goal. Actually they are between a rock and a hard place. They are trying to use methods that worked in previous times, but which will be unsuccessful this time.

Before, the fed controlled inflation by raising interest rates. That had the effect of slowing down the movement of money. If you slow money down it means the spending cycle is being disrupted and slowed. If there is less money and less spending then the goods are not moving either so there is no need to raise prices. Inflation is held in check.