US Treasury Secretary Yellen:

  • Financial markets are operating normally, doesn't see erratic financial market conditions
  • says she doesn't see any liquidity or deleveraging issues
  • current conditions are tighter as a result of the battle against inflation
  • US Treasury is monitoring market conditions closely

Yellen is right. Yeah, its volatile. It always is on the exit from complacency.

The UK is another matter, but not entirely. Markets are having to adjust to a new and profligate government. Thus there is nothing abnormal about traders trashing Gilts (and GBP) with what is coming out of the mouths of Truss and Kwarteng. But, for Yellen, the UK is not within her sphere of influence.

ps. There is no upcoming new Plaza Accord (that's from me BTW, not Yellen).