Fed and ECB Minutes to Reveal Inflation Concerns as Rate Hike Bets Cool
The Federal Reserve and European Central Bank will release minutes of their September meetings this week, revealing inflation concerns even as expectations for near-term rate hikes have faded following soft US jobs data and French market stress. US employment figures showed lower-than-expected job creation and lackluster wage growth, while Fed officials Philip Jefferson and John Williams signaled little urgency for another move. The ECB's account comes as euro-area inflation accelerated beyond forecasts, though investors see low chances of an October hike. The Fed meets October 27-28 ahead of midterm elections, while France's fiscal troubles keep focus on the ECB as a potential firefighter. Central banks in India, Kenya, and Peru are expected to hike rates, with India's Reserve Bank forecast to raise its repurchase rate to 5.5%.