Fed, ECB Minutes to Show Inflation Fears Amid Weakened Rate Hike Bets

The Federal Reserve (Fed) and European Central Bank (ECB) are set to release minutes of their September meetings, which saw them raise benchmark rates due to inflationary pressures.

However, recent soft US jobs data and acute stress in French financial markets have tempered the urgency among policymakers to follow up with further rate hikes this month.

In the US, solid economic growth has bolstered the job market, allowing the Fed to focus on inflation. The minutes of the September meeting may reveal that many Fed officials were deeply worried about underlying price trends and expected at least one more rate hike before the end of the year.

But Friday's employment data showed lower-than-expected job creation and lackluster wage growth, adding to evidence that the labor market isn't contributing to existing inflationary winds. Earlier in the week, government revisions to the Fed's preferred price gauge showed inflation has been softer this year.