What should the U.S. Congress and the Federal Reserve do about the current macroeconomic situation, i.e. inflation/recession?
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First of all, we are not in a recession right now. We are in a recovery, albeit a slow one. Second, inflation is not particularly high right now. If you look at the "fintrend" link below, you will see that inflation today is not high compared to most other times in the past decade.
As to what Congress should do, it is not clear. Macroeconomics is not a precise science and no one can be sure what impact various actions will have. Many people think that what Congress really needs to do is to reduce government spending and the deficit. Conservatives, in particular, believe that this would lead to an increase in aggregate supply. This would happen as people became more confident in the direction of the country and the economy. An increase in aggregate supply would increase GDP and reduce the price level. This would be perfect for making sure we don't go into a recession or have inflation.
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