How Can the Government Fight Inflation?

According to the latest inflation reports (BLS, BEA), prices in the United States are rising the fastest for food, energy, and shelter—all household necessities. Additionally, for those who like to have a bit of fun, costs for services like flights, hotels, restaurants, movies, streaming, and cell phones are also going up rapidly. 

But what can the government do? Indeed, some drivers of rising prices are outside of the realm of the current administration or central bank to tackle, but they are not without ammunition. 

To understand what is driving current inflationary pressures that are eroding household balance sheets, and what governments and the central bank can do to help, see What Can Governments Do to Slow Inflation?