The core issue here isn't how much inflation there is, but that the Federal Reserve has started to send mixed messages.

On one hand, they say 2.3% indicates cooling down, while on the other hand, they point to 3.3% as still rising, effectively making the market's expectations about whether to loosen policy swing back and forth.
The market fears this kind of situation the most—not high inflation, nor low inflation, but inconsistent direction.
You'll see a very typical pattern: the expectation of interest rate cuts just starts to rise, only to be pushed back by another set of data;