I need an economic explanation

when the central Bank of the US provide liquidity, (like what happened yesterday)
does this help equity go up?
US $ go down, and other currencies go higher against the $?
does more liquidity mean higher inflation in the future?

those rules-of-thumb won't get you anywhere. Most of the time there is a lot more complexity involved than saying "if this then that". cool avatar BTW.

I know I am not relying on this for my trading. just want to know the economical view of this.
thank you

Hi Abouelzelouf, in simple terms, the boost to dollar by Fed's TSLF was noticable, but it proved to be brief and the dollar weakened against across the board. Basically, the markets are concerned that the liquidity measures announced by Fed and other central banks are not enough to save the US economy from recession.

In the big picture of things, the TSLF measure taken by the US is only one of many other factors to consider. Speculation on news this week like Core Retail Sales and CPI numbers also would cause the $ to move either way...

The overall outlook of the US economy is still bad, and it may take some time before the TSLF funds actually start showing visible impacts, if at all.

Yeah. The FED is trying to keep the financial parts of teh economy from seizing up, the american consumer is still tapped out, facing record energy and food costs and in the midst of a housing meltdown.