The state of the stock market is a multiplier of value due to speculative expectation. The rate cut seems very important as it signals that the relatively short period of supply side inflation has finally resolved so the money supply can increase (i.e. new debt can fund more activity).

I am no expert but believe that the supply side inflation was extended by controlling demand and the risk of economic collapse was increased by the conventional controls but also that control was overdue as there is an imbalance between government spending and the ability of governments to balance the books with taxes.

In the UK the (previous) government increased taxes by not adjusting tax thresholds as inflation increased the numbers (without increases in productivity).

Is the level of government debt the actual inflation? i.e. more cash in the system that is represented by non-productive activity?

Or is the pressure going to give at some point when there is nobody left to fund the debt (resulting in hyperinflation)?