President Trump said he plans to name a replacement this week for Federal Reserve governor Adriana Kugler, who is stepping down Friday, as well as for Erika McEntarfer, the Bureau of Labor Statistics chief he fired following Friday's weak jobs report. Meanwhile, an index of U.S. employment for July fell to its lowest point since last October, and factory orders in the U.S. decreased 4.8% in June.

Adriana Kugler's departure from the central bank provides an opportunity for President Trump to recruit an eventual external successor to Fed Chair Jerome Powell, or at least a board member who shares his preference for imminent rate cuts. “I have a couple of people in mind,” Trump told reporters late Sunday. “I’ll be announcing that probably over the next couple of days.”

The Conference Board’s Employment Trends Index, or ETI, fell to 107.55 in July from an upwardly revised 108.19 in June, the research group said Monday. Despite the decline, the ETI has remained within a tight range in the last 12 months, supporting the view that the labor market remains stable overall, said Mitchell Barnes, an economist at The Conference Board.

• Trump’s BLS Firing Tests Wall Street’s Reliance on Government Data
• Real Strains Inside the BLS Made It Vulnerable to Trump’s Accusations

• Switzerland Says It’s Ready to Make 'More Attractive' Trade Offer
• Europe's Push for Tariff Exemptions on Wine, Spirits Continues
• Trump Renews Tariff Attack on India Over Russian Oil Purchases

8:30 a.m.: U.S. International Trade in Goods and Services
8:55 a.m.: Johnson Redbook Retail Sales Index
9:45 a.m.: U.S. Services PMI
10 a.m.: ISM Report on Business Services PMI
10 a.m.: RCM/TIPP Economic Optimism Index
11 a.m.: Global Services PMI
11 a.m.: Federal Reserve Bank of New York Q2 Household Debt and Credit Report published

2 p.m.: Fed’s Cook discusses the U.S. and global economies

Much ink has been spilled in recent weeks, and hours of cable news spent, debating whether the Federal Reserve’s independence is under political threat. But lost in these debates is an equally dangerous challenge: People often misunderstand what the Fed does—and what it legally can’t do. That misunderstanding poses a hidden threat to the institution’s independence, writes former Philadelphia Fed President Patrick Harker for WSJ Opinion.

Misplaced expectations erode the Fed’s independence. When the public expects things from the central bank it isn’t designed, or authorized, to do, disappointment is inevitable. And disappointment, when widespread and sustained, corrodes trust.

As we navigate the complex economic challenges ahead, from inflation and fiscal pressures to geopolitical risk and labor market shifts, let’s recognize what the Fed can actually do. If we don’t respect what the Fed is—and isn’t—we risk losing one of the few institutions still capable of rising above politics to serve the long-term good.

(Patrick Harker is a distinguished professor at the University of Pennsylvania’s Wharton School. He served as president of the Federal Reserve Bank of Philadelphia from 2015 to 2025.)

• Many hedge funds have weathered this year’s trade-war turmoil well. The one big exception: fast-moving quantitative funds that are meant to flourish in tough markets.
• With President Trump’s tax law putting an early end to solar tax credits, the residential solar industry is now looking to lower prices, particularly by cutting sky-high sales and marketing costs, according to companies and analysts.
• Industrial production surged in France, driven by a jump in aviation output as recent supply issues eased, adding to signs of a recovery in European manufacturing.
• U.K. new-car sales fell by 5% in July, demonstrating the market’s volatility and wider economic environment, an industry body said.
• A private gauge of China’s services sector showed activity expanded at the fastest pace in more than a year in July, as demand improved during the summer travel rush.
• China is limiting the flow of critical minerals to Western defense manufacturers, delaying production and forcing companies to scour the world for stockpiles of the minerals needed to make everything from bullets to jet fighters.
• Australia is considering establishing a price floor for critical minerals to help shore up supply of commodities essential to defense and strategic technologies, said Resources Minister Madeleine King.

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.