John Rogers voiced admiration for China before U.S. prosecutors alleged that the Federal Reserve economist sent secrets to Beijing. Rogers, who left the Fed in 2021, has denied all charges against him, including that he knowingly assisted Beijing.

The U.S. will hold off on hitting the European Union with additional tariffs until July 9, a reprieve on President Trump's threat to impose 50% levies on June 1 if a trade deal isn't reached.

Key economic data in the coming week include U.S. PCE inflation figures and consumer confidence data, alongside Federal Reserve minutes.

Investors will continue to watch bond yields. Long-dated Treasury yields rose sharply after Moody’s downgraded the U.S. and on concerns about Trump’s tax and spending bill, which recently passed through the House and is expected to raise the deficit even further.

John Rogers was visiting Shanghai in May 2013, attending a business forum as a Federal Reserve economist, when he first received an email from an alleged Chinese intelligence agent.

The man described himself as a Chinese graduate student who was interested in learning about the Fed. Rogers says he refused the man’s offer to pay him. But they stayed in touch, and later, the man invited Rogers to visit China again, all expenses paid.

This time, Rogers made the trip, setting off a chain of events that led to espionage charges against him in the U.S.—and exposed new details about China’s alleged efforts to recruit informants inside U.S. government institutions.

Prosecutors allege Rogers handed over sensitive information to Chinese operatives, who posed as students and who offered to cover travel expenses to China. Rogers met his Chinese handlers in hotel rooms and in some cases shared internal Fed reports, including information prepared for discussions by the rate-setting Federal Open Market Committee, according to an indictment unsealed in January that accused Rogers of conspiring to commit economic espionage.

Federal Bureau of Investigation officers arrested Rogers in January and found $50,000 in cash at his Washington-area apartment—money that his wife said belonged to her.

The U.S. will hold off on implementing additional tariffs on the European Union until July 9, President Trump said, giving a reprieve on his threat to impose 50% tariffs on the 27-nation bloc on June 1 if the two sides couldn’t reach a trade deal.

• EU Agrees to Fast-Track Trade Talks With U.S.
• Lagging Confidence in Dollar Offers Chance to Raise Euro’s Profile, Lagarde Says
• Eurozone’s Economic Outlook Picks Up After Tariff Turmoil Abates

Key data include U.S. PCE inflation data–the Fed’s preferred inflation measure–for April on Friday, as well as the Conference Board consumer confidence index for May and the second estimate of first-quarter gross domestic product on Thursday. Tuesday’s durable goods orders for April could attract more attention than usual for indications on the impact of tariffs. The Federal Reserve’s minutes on Wednesday will be watched for details on policymakers’ discussions at their latest meeting. The Fed signalled that rate cuts were unlikely for now given risks to inflation but nonetheless policymakers remain concerned about the damage tariffs could do to the economy. Read more.

Millions of Americans had their student-loan payments put on pause during the pandemic. Now they are back on the hook again.

For borrowers, this means that every month, money that they presumably used to spend elsewhere is going to pay off debt instead. Many who aren’t paying are now considered delinquent or defaulted, a status that sinks credit scores. Around 5.6 million borrowers were marked newly delinquent on their student loans in the first three months of this year.

That will strain personal finances. At the same time, it creates fresh challenges for the broader economy.

8:30 a.m.: Advance Report on Durable Goods
9 a.m.: U.S. Quarterly House Price Index
9 a.m.: U.S. Monthly House Price Index
9 a.m.: S&P CoreLogic Case-Shiller Indices
10 a.m.: Consumer Confidence Index
10:30 a.m.: Texas Manufacturing Outlook Survey

7 a.m.: MBA Weekly Mortgage Applications Survey
9 a.m.: Johnson Redbook Retail Sales Index
10 a.m.: Richmond Fed Business Activity Survey
2 p.m.: Federal Open Market Committee meeting minutes published

When President Trump backed down from his harsh bilateral "Liberation Day" tariffs last month, investors took heart that the "Trump put" was alive and well--a bet that Trump's instincts for appeasement in the face of market downturns place a floor under asset prices. Brent Donnelly of Spectra Markets says new tariff threats show another feature of Trump's reaction function: When markets stabilize, Trump takes it as a blessing to resume his previous provocations. It looks more like a "Trump strangle," a reference to an options strategy that bets on volatility, agnostic to direction. — Matt Grossman

The yen strengthens against other G-10 and Asian currencies in the early morning session after Bank of Japan Gov. Ueda's remarks that appear to support the case for further BOJ rate increases. At the Japanese central bank's Institute for Monetary and Economic Studies conference, Ueda said the BOJ will continue to raise rates, depending on economic and price conditions, and the central bank needs to be wary of the impact of food prices on Japan's underlying inflation. USD/JPY falls 0.4% to 142.34; AUD/JPY drops 0.4% to 92.30; EUR/JPY is 0.2% lower at 162.29. — Ronnie Harui

• This year’s volatile, trade war-obsessed market didn’t shake American investors’ fondness for exchange-traded funds. In fact, it only made them love them more.
• The Bank of Canada should consider further rate cuts should the economy deteriorate markedly due to U.S. tariffs as long as longer-term inflation expectations remain steady, says the latest survey of the country from the Organization for Economic Cooperation and Development. (Dow Jones Newswires)
• Consumer sentiment in Germany improved a little as wage expectations grew and views of the economic outlook calmed, despite the uncertainty provoked by President Trump’s tariff policies, a monthly survey said Tuesday.
• French inflation cooled more than expected in May, likely clearing the way to an expected European Central Bank interest-rate cut next month.
• Swiss watch exports climbed in April, propelled by an exceptional increase in the U.S. due to early shipments ahead of the potential implementation of tariffs on imported goods to the country.
• To weather a trade war with the U.S., China is looking to its own consumers to keep the economy churning.
• American and Chinese firms are racing to clear a backlog of orders during a pause in trade war hostilities.
• China’s industrial companies reported higher profits in April, driven by increased production despite continued uncertainty caused by trade tensions between Beijing and Washington.
• Australian consumer confidence fell last week even as the Reserve Bank of Australia cut interest rates for the first time since February and strongly indicated it will keep easing policy settings over coming months. Consumer confidence fell 1.8 points over the week to 87.0 points, according to a survey by ANZ Bank and pollster Roy Morgan. (DJN)

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ’s global team of reporters and editors. This newsletter was compiled by markets reporter Vicky Ge Huang in New York. Send your tips, suggestions and feedback to vicky.huang@wsj.com.