What do these recent developments mean?

Question

Central banks have increased liquidity, apparently pumping cash into their systems. The Fed lowering one of it's rates.

What exactly do these mean and what does it mean for the big picture?

Answer 1

They are called "Open Market Operations". Basically, they are trying to make sure there is plenty of money to lend (Liquidity), otherwise money gets scarce, or Interest Rates go up. This was accomplished when the Fed bought Treasuries from the Banks, giving them cash.
By, at the same time lowering Interest Rates, it is a second measure to keep Interest Rates down, and avoid inflation.

They tried this in 1978, WITHOUT lowering rates, and we ended up with massive inflation.

Really, a basic Economic Action by the Fed. to smooth out the Economy.
This became a very accepted practice, under Fed. Chair, Paul Volkker, who was appointed during Carters Admin., and served well under Reagan.

Answer 2

It doesn't mean anything for the big picture. Monetary policy is inherently a short-run thing...