Interested in answer and related web sites for the following question.
 If the newspaper reported that last week the Feds conducted open
market purchases and that on Tuesday of last week it lowered the
discount rate -- what would the Feds be up to?

the fed targets a fed funds rate, which is the rate banks charge each
other for overnight loans. by either buying or selling government
securities through open market operations the fomc, federal open
market committee is able to manipulate reserves to maintain fed funds
at the target rate. the fed selling securities to banks drains
reserves. that would tend to force interest rates higher. the fed
buying securities increases reserves. this would tend to shift
interest rates lower.

the discount rate is the rate banks pay on loans to them from the
federal reserve. when the discount rate is high or rising banks will
tend to increase reserves beyond legal minimums. conversely low or
dropping discount rates will encourage banks to reduce excess
reserves. reducing reserves to at or near minimum requirements will
tend to encourage banks to make more loans thereby increasing the
money supply and lowering the cost of borrowing in the short term.

both of these actions are tools used in the implementation of monetary
policy. both of the actions you have cited are expansionary and
represent examples of a fed attempting to expand and stimulate an
economy.