Volatility A nervous calm

US financial markets had a wobble when a posse of Federal Reserve governors started talking tough about inflation two weeks ago. They have now regained their poise. But this is a nervous calm. It’s not that the recent high inflation has come to an end. On the contrary, the producer price index in the year to September increased at a 6.8% annual rate, the highest since 1982. It will take a few months for wholesale prices to work their work their way to final customers. Nor has the Fed become les...