The correct action by the Federal Reserve during a recession would be:
Buy bonds in Open Market Operations to increase the money supply.
During a recession, the Federal Reserve typically seeks to stimulate the economy by increasing the money supply, which can be achieved by purchasing bonds in open market operations. This action lowers interest rates, encourages borrowing and spending, and helps to support economic growth. The other options would either be inappropriate actions during a recession or actions that fall outside the Federal Reserve's typical functions.