a 1300point drop in dow industrials a dramatic selloff in bonds that sends treasury yields soaring signs of panic selling on wall street and a dollar soaring to some of its highest levels in two decades all in a single day thursday’s dramatic price action offers “elements” of what may still be in store on the outside risk that inflation pressures keep growing even after the federal reserve delivers rate hikes said fhn financial’s jim vogel and it’s a chance that can’t be ignored he said  though many in financial markets suspect us inflation has already peaked the risk is that it hasn’t creating room for further volatility across assets congestion at global ports which act as the conduit of trade has only worsened since last year according to rbc capital markets and in a rude surprise for investors on thursday the bank of england put both a doubledigit inflation outlook for the uk plus prospects of sharply slower growth on the map   read pound drops to nearly 2year low despite bank of england lifting key rate to 1  “there’s a risk that inflation continues to surge ahead and it would come from compounded labormarket pressures that continue to come in along with supply shortages and logistics issues” vogel a memphisbased executive vice president said via phone see why the stockmarket plunge is partly due to bad news on the inflation front  while the range of professional estimates on the consumerprice index excluding food and energy is 2 to 35 for next year derivatives traders see core cpi coming in closer to 41 in 2023 the chart below shows where derivatives traders now see the gauge going as reflected in the blue line versus where they expected it to be in march “while we are in the lowerinflation camp you can’t brush aside the risk that inflation may go higher” fhn’s vogel said via phone “there’s real potential for that” while china’s covid19 shutdowns are one issue russia’s war on ukraine has the potential to drive up the prices of everything from raw materials to goods and labor he said  generally speaking most forecasters in the us are optimistic that inflation currently running at its highest level in four decades will eventually ease off economists surveyed by the wall street journal in april saw another measure which also kicks out food and energy known as the core pce falling to 28 in 2023 from 43 this year on average they also saw the annual headline rate on the consumerprice index falling to 29 by december 2023 from 75 this june  thursday’s rollercoaster ride in financial markets included a more than 1300point drop in dow industrials djia during the final hour of trading treasury yields were sharply higher with rates on 7 to 30year maturities all trading above 3 the ice us dollar index dxy rose 12 to its highest levels since the second half of 2002 also see why is the dow down more than 1000 points should i wait for stocks to sink lower here’s what some pros think