>>60790879
The market is a positive feedback loop. Pumping causes pumping. Dumping causes dumping.
This naturally causes bubbles, which eventually pop. Except, that's not good for stability. The fed's job is to mitigate economy shattering bubble like what we saw with the great depression and other crises. This is called monetary policy.
Inflation up a little bit is mostly in line with what people were expecting. And people were expecting the fed to cut rates, due to the job situation. Hence the pump.
If the inflation is up more than expected, however, that raises the chance that the fed does nothing or even hikes rates. Hence the dump.
Without this moderating force, inflation up would cause everyone to pile in and buy even more "assets", further accelerating the bubble and (eventually) causing very big problems.
