US Treasury Secretary Yellen says that financial markets are operating normally.

US Treasury Secretary Yellen:

• Financial markets are operating normally, doesn't see erratic financial market conditions
• says she doesn't see any liquidity Liquidity Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Read this Term or deleveraging issues
• current conditions are tighter as a result of the battle against inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term
• 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).