When inflation exceeds desired expectations, Fed balance sheet assets can be sold which will drain reserves from the banking system and indirectly reduce credit creation in the economy. But, I hear someone cry out, the Fed will lose a lot of money if they sell Treasuries in a higher interest rate environment at a reduced price. Because of the noise (week-to-week movements from abnormal events AND the backward revisions to previous weeks releases), the 4-week average remains the reliable gauge.