Treasury Secretary Scott Bessent hinted the Federal Reserve ought to consider cutting rates by pointing to how shorter-dated Treasury yields, which are sensitive to monetary-policy expectations, have moved steadily lower in recent weeks. Meanwhile, ahead of the April U.S. jobs report, weekly filings for new unemployment benefits hit the highest level since February. Economists are expecting today’s jobs report to show a gain of 133,000 jobs last month, down from 228,000 in March, with unemployment holding steady at 4.2%.

“We are seeing that two-year rates are now below fed-funds rates. So that’s a market signal that they think the Fed should be cutting,” Treasury Secretary Scott Bessent said Thursday in an interview on Fox Business Network. The Fed has maintained a target range for the federal-funds rate of between 4.25% and 4.5% since December. The two-year Treasury yield had been near the bottom of that range from the start of the year through February, but it has drifted lower as President Trump has imposed broader and larger tariffs on foreign imports.

In the last full week of April, 241,000 Americans sought jobless benefits, well more than analysts were expecting and the greatest figure in more than two months. Still, the rise wasn't such a big jump that economists will be sounding the alarm just yet. Bigger increases over the past 12 months have quickly reversed.

• Continuing Jobless Claims Hit Highest Level Since 2021

• China Signals Readiness to Respond to U.S. Trade Overtures
• Trade War Exposes China’s Dependence on U.S. for Auto Chips

The Justice Department filed a complaint alleging some of the biggest Medicare insurers paid kickbacks to brokers that sell such plans, seeking to grab market share and in some cases avoid enrollees with disabilities who might come with heavy health costs.

8:30 a.m.: U.S. Employment Report
11 a.m.: Global Manufacturing PMI

1 p.m.: Federal Reserve Governor Lisa Cook speaks at James Madison College Commencement Ceremony at Michigan State University

9:45 a.m.: U.S. Services PMI
10 a.m.: ISM Report On Business Services PMI
10 a.m.: U.S. Employment Trends Index

The Bank of England is likely to cut interest rates by 25 basis points at its meeting on May 8, lowering the bank rate to 4.25%, Barclays economist Jack Meaning says in a note. The BOE is also likely to revise down its inflation forecast due to a weakening growth outlook and possible deterioration in labor market data, Meaning says. “We expect the modal inflation forecast to be revised down by 0.6 percentage points at the one-year horizon, to 2.0%,” he says. — Miriam Mukuru

The U.S. likely has no leverage over China on tariff negotiations, Jefferies analyst Christopher Wood says in a research note. Therefore, Beijing has made it clear that it won't cut tariffs unless the US makes the first move, he says. Trump has tried to isolate China by negotiating trade deals with its allies first, he notes. However, these countries will unlikely agree terms that threaten their trading relationships with China, as China is now a more important trading partner than the U.S. for many countries, the economist says. Meanwhile, China is likely not in a rush to unveil big stimulus measures, because President Xi "doesn't believe in such a policy and in part that the central government doesn't want to be seen to be panicking in the face of the U.S.," he adds.  — Sherry Qin

• Since President Trump took office, oil drillers’ stocks have plummeted, crude prices have tumbled and gasoline prices remain stubbornly high. Some frackers are starting to reconsider their drilling plans because they anticipate demand for their product will weaken—in part as a result of Trump’s shifts on trade.
• American manufacturers had just begun to emerge from a long slump when the trade wars struck. Now they have fallen back into contractionary territory as they try to cope with widespread tariffs being imposed on imported goods by the administration of President Donald Trump. The manufacturing index of the Institute for Supply Management slipped to a five-month low of 48.7% in April from 49% in the prior month. Any number below 50% signals contraction. (MarketWatch)
• The U.S. and Ukraine have signed a deal giving America access to Ukrainian minerals, an agreement that the Trump administration says will help compensate for assisting Kyiv in its fight against Russian invaders. But developing Ukraine’s large resources will require huge investment, and many of the regions where they are found are in areas occupied by Russia.
• Consumer-price inflation in the eurozone remained just above the European Central Bank’s target in April, teeing up more interest-rate cuts as policymakers anticipate a hit to growth from higher U.S. tariffs and growing uncertainty.
• Europe can resolve its trade dispute with the U.S. by purchasing 50 billion euros’ worth of American goods like gas and soybeans, the EU’s top trade negotiator said. The EU won’t accept a baseline 10% U.S. tariff on European imports as a long-term solution to the trade issue, commissioner Maros Sefcovic told the Financial Times in an interview.
• Factory activity slowed across much of Asia in April as uncertainty over U.S. tariffs caused companies to pause new orders, purchasing managers surveys show. The first set of S&P Global’s purchasing managers indexes since the Trump administration announced sweeping tariffs on dozens of countries signaled a pullback in manufacturing in the region last month.
• Japan will act in response to any surge in Chinese imports if U.S. tariffs push unsold Chinese goods onto global markets, the country’s finance minister said, a sign of concern about the knock-on effects of President Trump’s trade war.
• South Korea’s headline inflation remained flat in April, possibly paving the way for the central bank to loosen monetary policy further to support the sagging economy.

Carbon-removal credits are one of the few ways companies can decarbonize, but so far demand has remained limited to just a handful of buyers.

Getting a startup on its feet after a cyberattack can cost a fortune. More often than not, investors get stuck with the bill.

Tariff uncertainty and geopolitical turbulence have boosted interest in private-credit investment.

Brands like Mastercard and PepsiCo are shaking up their Pride spending, with some citing political pressure and economic uncertainty.

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 Michael Maloney in New York. Send your tips, suggestions and feedback to michael.maloney@wsj.com.