I usually post about the US but today it's Germany that's on the spotlight. And properly so, since German consumer inflation hit 10.9% in September, the highest reading since the end of WWII - see chart below.
Germans have a deeply imbedded visceral fear of inflation. After what happened during the Weimar Republic and its Nazi aftermath no one can blame them. It is very likely, therefore, that German leaders will be pushing the ECB very hard to raise rates more than expected and to - finally - start shrinking its balance sheet to remove liquidity from the system. I hasten to note that the ECB is very, very far behind the curve in fighting inflation, a situation that is 100% the fault of Mrs. Lagarde.