The minutes from the Federal Reserve and European Central Bank meetings are due to be released next week and are expected to highlight inflation concerns.

BlockBeats news, October 4th - Due to weak US non-farm payroll data and severe turbulence in French financial markets, the urgency for Federal Reserve and European Central Bank policymakers to follow up on September's rate hikes at their respective meetings this month has diminished. Both central banks will release minutes from last month's meetings in the coming days. At last month's meetings, they raised rates due to concerns about rising inflationary pressures. The Fed's September meeting minutes may show that many policymakers were deeply concerned about underlying price trends at the time and expected at least one more rate hike before the end of the year. However, Friday's non-farm payroll data showed lower-than-expected job additions and weak wage growth, further indicating that the labor market is not fueling existing inflationary pressures.

Earlier this week, government revisions to PCE showed that inflation has been slightly lower this year than previously estimated. Economists believe that the threshold for a rate hike in October is now high. Even if the meeting minutes remind the market of the hawkish stance officials took in September, subsequent data has reinforced the case for patience. Although services inflation may keep the option of a December rate hike alive, the Fed will likely need clearer evidence that price pressures have resurfaced before raising rates again. (Jinshi)