IF US Federal Reserve (Fed) chair Kevin Warsh is happy to let financial markets do some of the central bank’s work, he should be pleased with the recent selloff in stocks and bonds. But the recent tightening in financial conditions is far from enough to let him off the hook.

The new Fed boss has repeatedly made clear that overall access to finance shows little sign of being restricted by the central bank, despite an economy that has proven resilient and continues to generate uncomfortably fast price growth.