The Federal Reserve could expand the money supply as part of an anti-recession strategy by taking a number of actions.
First, the Federal Reserve could reduce the federal funds rate, which is the rate at which banks lend to each other. This could be done by buying government bonds from banks, which would increase the money supply and lower the rate.
Second, the Federal Reserve could engage in quantitative easing by purchasing government bonds and other assets from banks. This would increase the money supply and provide liquidity to the banking system.
Third, the Federal Reserve could engage in open market operations by buying and selling government securities. This could be used to increase the money supply and provide liquidity to the banking system.
Finally, the Federal Reserve could reduce reserve requirements, which are the number of money banks must hold in reserve in order to lend money. This could be used to increase the money supply and provide liquidity to the banking system.
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