Which action by the Federal Reserve would NOT likely increase the money supply?

Selling U.S. Government Securities is an action that would likely not increase the money supply. When the Federal Reserve sells government securities, it effectively withdraws money from the banking system because buyers pay for these securities with cash, which is then removed from circulation. This reduction in cash available to the banks decreases their reserves, leading to a contraction in the money supply.

In contrast, buying U.S. government securities injects money into the economy, as the Federal Reserve buys these securities and pays the sellers, increasing the cash available in the banking system. Lowering the discount rate also encourages banks to borrow more from the Federal Reserve, increasing their reserves and thus the money supply. Similarly, lowering the reserve requirement allows banks to hold less money in reserve and lend more, further expanding the money supply.