Good News For These Troubled Times

Help is on it's way. By way of the Federal Reserve dropping 1 trillion dollars (To do a touchback on the Austin Powers movies, I think Dr. Evil only was asking for a few billion) into the economy.

Saying that the recession continues to deepen, the U.S. Federal Reserve announced Wednesday that it would pump an extra $1 trillion into the economy by buying mortgage-backed securities and long-term Treasury issues.
[. . .]
Starting last September, the new lending programs — including money for bailouts of individual companies like Citigroup, American International Group and Bank of America — have caused the Fed to print new money at the fastest pace in history[emphasis mine]. But much of that money has remained dormant, because the economic downturn has made banks reluctant to lend and businesses and consumers either reluctant or unable to borrow.

A couple of exit questions for someone with only a public education of economics:

1: Would pouring one trillion dollars into the economy cause massive inflation of the currency?

2: Wouldn't it be cheaper in the long run to cut a check for every person in America for a million bucks?