The Federal Reserve and the European Central Bank will hold monetary policy meetings one after another this week. Karsten Junior, chief economist and head of the economic research and analysis department at Switzerland's Jiasheng Bank, believes that European and American central banks do not need to rush to raise interest rates in October. Although the risk of inflation still exists, both central banks must weigh the inflationary pressure brought about by energy prices and the impact of tightening financial conditions. It is expected that the ECB will keep interest rates unchanged. On the US side, the bank believes that inflation expectations as reflected in market indicators remain stable. Coupled with the continued tightening of financial conditions, Federal Reserve Chairman Walsh still has room to observe patiently. However, considering that without further tightening monetary policy, it will be difficult for inflation to return to the 2% target. Therefore, the bank maintains the forecast of the Fed's gradual interest rate hike. It is expected to raise interest rates by 25 basis points in December, then raise interest rates three times quarterly next year. As demand gradually cools down, it will push the final interest rate to the 4.75% to 5% range.

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