The Trump administration asked the Supreme Court on Thursday to allow it remove Lisa Cook from her position as Federal Reserve governor while a lawsuit challenging the president’s effort to fire her is underway. The U.S. economy faces a slowing economy amid growing concerns about the labor market, headwinds from tariffs and a weak manufacturing sector, according to a basket of economic indicators. Overseas, the Bank of Japan left its main rate unchanged and said it would begin selling its stockholdings, a move seen as a step further in monetary policy normalization.

The Trump adminstration asked the Supreme Court on Thursday to let it remove Federal Reserve governor Lisa Cook from the central bank’s board. The emergency request comes after a federal appeals court in Washington, D.C., rejected the administration’s bid to lift an order stopping the president from removing Cook from her post ahead of the Fed’s meeting earlier this week. The 2-1 decision was handed down the night before the meeting began.

Manufacturing activity in the Philadelphia region expanded much more than expected this month, reflecting a rebound in orders after some tariff uncertainty for firms was lifted. The Federal Reserve Bank of Philadelphia said Thursday that its business-activity index rose to 23.2 in September from minus 0.3 in August. That marked the highest reading since January, and well above a consensus expectations of 2.0 from economists polled by The Wall Street Journal. (Dow Jones Newswires)

5 a.m.: Japan Monetary Policy Meeting decision
1 p.m.: FRB San Francisco President Mary Daly speaks at AI Implications for Workforce Development and Economic Mobility event
7 p.m.: U.S. President Donald Trump and Chinese President Xi Jinping discuss TikTok ownership

8:30 a.m.: Chicago Fed National Activity Index (CFNAI)
10 a.m.: Brookings Institution discussion featuring FRB St. Louis President Alberto Musalem
12 p.m.: FRB Cleveland President Beth Hammack participates in Fed Talk conversation event
12 p.m.: Economic Club of New York event with new Federal Reserve Governor Stephen Miran
12 p.m.: Federal Reserve Bank of Richmond President Thomas Barkin speaks at Howard County Chamber of Commerce event

Affordability concerns, which have led to stagnant home sales, are now leading to slowing homebuilding activity, say D.A. Davidson analysts Kurt Yinger and Aditya Madan. Total housing starts in August were down 6% year-over-year and single-family starts were down 12%. Home affordability challenges are hurting single-family building activity, "while consumer confidence, trade policy/ broader economic uncertainty, and elevated levels of completed unsold home inventory are other factors that serve as cold water being added to single-family embers," the analysts say. Even though mortgage rates have fallen, the economy's labor market has weakened, dampening expectations for a turnaround in home sales. — Nicholas Miller

The Bank of Japan will likely hike its overnight call rate after the Oct. 1 Tankan Survey release and the LDP leadership election on Oct. 4, TD Securities strategists Alex Loo and Prashant Newnaha say. Pointing to the central bank's announcement to sell its ETF and J-REIT holdings, the strategists say the entire disposal is likely to take 112 years for ETFs and 131 years for J-REITs. "Investors aren't likely to panic over this glacial pace of selling," they say in a note. TD expects the sales to begin after BOJ's April 2026 meeting, and views the Nikkei and TOPIX sell-off today to be temporary. — Jason Chau

• The number of Americans who newly filed for unemployment benefits declined sharply last week, the Labor Department said Thursday, returning the figures to the previous trend after a large spike the week before.
• President Trump’s trade war almost broke Mexico and Canada’s relationship. Now they are trying to repair the damage ahead of tough negotiations with the U.S.
• U.K. retail sales rose last month, a boon to the economy which is suffering from high inflation and slowing activity.
• The mood of British consumers dampened a little this month, with expectations of a slowing economy and the potential for tax increases later this year threatening an even greater downturn.
• Japan’s consumer prices rose at a slower pace in August but remained well above the central bank’s 2% target, backing the case for an interest-rate increase.

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.