The goals of the Federal Reserve when it decreases the discount rate are to increase the money supply by lowering the discount rate.
Adjusting the discount rate by the reserve usually help central banks such as the Fed in reducing liquidity problems as well as the pressures of reserve requirements.
In this case, , control the supply of money in the economy as well as basically assure stability in the financial markets will be achieved.
The Federal Reserve can increase the money supply through the lowering the discount rate because Lowering the discount rate gives depository institutions a greater incentive to borrow.
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