Rate Hike Bets Fade as Fed and ECB Policymakers Respond to Market Stress

Recent soft US jobs data and stress in French financial markets have reduced pressure on the Federal Reserve (Fed) and European Central Bank (ECB) to raise interest rates further. The Fed and ECB will release minutes from their September meetings, which saw benchmark rate hikes aimed at addressing inflation concerns.

The minutes are expected to reveal policymakers' thoughts on rising inflationary pressures. While there is no indication that the central banks are abandoning their inflation-fighting efforts, the urgency among policymakers to follow up with further rate hikes has decreased.