Fed to lower rates again

This morning I have been seeing on all the news outlets that the Fed is going to cut the Discount Rate 1%. This rate mainly affects the interest on money lent from the Federal Reserve to financial institutions, but it has the effect of lowering the value of the dollar because it increases the quanitity demanded for money but lowers the demand below equilibrium. In other words, more money is used by the people in the American economy, but the interest rates do not rise to prevent inflation, resulting in more dollars chasing fewer goods.