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The Executive Branch can make or influence policy:

Some policies are unilaterally implemented by the executive branch, such as the one allowing torture under the current (2008) administration. Other policies, which require congressional authorization, may still be begun by the President's introducing legislation for Congress to discuss and vote on.

The president may veto bills he vehemently disagrees with. Though with a large enough majority, congress and the Senate may overturn that veto, they rarely can. The President may issue signing statements-- upon signing a bill into law, he may issue a statement of his interpretation of the law, that is, how he will instruct the Justice Department (or Agriculture, or whichever is relevant)to implement/enforce the new law. Some signing statements in the current administration have nearly negated the law which was passed. The president may use the Bully Pulpit. That is, he may make broad statements of goals and needs, such as Kennedy's 'man on the moon in 10 years, Johnson's War on Poverty, or Reagan's War on Drugs.

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