Hyperventilating world markets have finally caught their breath as the U.S. bank shock of the past week appeared to calm somewhat and gyrating interest rates found a level.

But volatility is likely to persistMOVE> – not least in pre-meeting blackout periods for major central banks – as easing financial system tensions merely re-introduce rate hike risks that sticky US inflation readings seem to warrant.

The Federal Reserve is considering tougher rules and oversight for midsize banks similar in size to Silicon Valley Bank, which collapsed suddenly last week. Strengthened rules on banks in the $100 billion to $250 billion range could ape those for larger more systemic banks and involve stringent capital and liquidity requirements or beefed up annual “stress tests”.