The European Central Bank should refrain from lowering interest rates again after inflation in the currency area hit the 2% target in June, rate setter Isabel Schnabel said. “Our interest rates are also in a good place, and the bar for another rate cut is very high,” the member of the ECB’s executive board said. Meanwhile, Federal Reserve governor Christopher Waller said interest rates don’t need to be so restrictive with inflation coming down, and the Trump administration lobbed more criticism at the Fed—this time over renovations to its headquarters.

Interest rates are already becoming accommodative–stimulating economic growth–and there would only be a case for another rate cut if there were signs of a material deviation of inflation from the target over the medium term, Isabel Schnabel said in an interview with Econostream Media. “And at the moment, I see no signs of that,” she added.

Inflation has come down far enough to justify a move—and tariffs should necessarily not be a reason to delay, he said. Waller said the Fed’s policy rate is still well above where many officials believe it needs to be in the long run.

Inflation has cooled, the job market is steady, and recent tariff-driven price increases are limited to select goods, he said. If inflation is coming down, you don’t need to be as restrictive anymore, Waller said. “That’s my view. I’m kind of in the minority on this, but I’ve tried to lay out very clearly, in economics terms, why we could do this. It’s not political,” he said.

The Trump administration is once again ramping up pressure on Fed Chair Jerome Powell—this time over a costly renovation of the central bank’s headquarters that it says may have violated federal planning rules, Barron’s reports.

The director of the Office of Management and Budget sent a letter to Powell demanding answers about the $2.5 billion renovation, saying the Fed may have moved ahead with major design changes without getting approval from the National Capital Planning Committee.

In a hearing before Congress last month, Powell told lawmakers that some of the more expensive design elements—rooftop gardens, marble finishes and executive dining rooms—were no longer in the plan. But the Trump administration says that isn’t clear from the Fed’s filings.

The apparent shift in attitude—at odds with China’s ban on cryptocurrencies—was likely driven by concerns that U.S. support for stablecoins could further entrench the dollar’s dominance in the global currency system, analysts say.

The Bank of Mexico’s cycle of half-percentage-point interest-rate cuts came to an end last month as a majority of board members agreed that future reductions should be smaller, minutes of the meeting showed Thursday.

The U.S. will put a 35% tariff on imports from Canada effective Aug. 1, President Trump announced on Thursday evening. But an exemption for goods that comply with the nations’ free-trade agreement, the U.S.-Mexico-Canada Agreement, would still apply, a White House official said, stressing that could change.

• Trump Doubles Down on Using Tariffs as Tool of American Power

The number of Americans who newly filed for unemployment benefits declined last week, the Labor Department said Thursday, although the report suggested that the size of the unemployed population continued to grow in June.

Speed-dating-style interviews that can drag on until 3 a.m. Job offers that require a response within a day. A fear that your current boss might find out what you’re doing. All for positions that don’t even start for two to three years. Welcome to the frenzied world of private-equity recruiting, where recent college graduates who have barely started their first gigs as analysts at big banks vie to secure coveted positions at buyout firms.

12 p.m.: World Agricultural Supply & Demand Estimates

7 p.m.: Federal Reserve Board adopts new Fedwire Funds Service message format

The dollar could weaken if President Trump’s pick to become the next Federal Reserve chair bows to his demands to lower interest rates, MUFG Bank’s Lee Hardman says in a note. The Wall Street Journal reported earlier this week that Kevin Hassett, one of Trump’s closest economic advisors, is emerging as a serious contender to be the next Fed chair. Hassett has recently stated there is no reason the Fed shouldn’t cut rates. But he would be viewed “as more of a yes man” for Trump, Hardman says. “A development that could increase downside risks for the dollar in the year ahead.” — Renae Dyer

• The U.K. economy unexpectedly contracted for a second consecutive month in May, a sharp reversal in fortune following a stronger-than-expected start to the year that makes it more likely the Bank of England will cut its key interest rate soon.
• Ireland’s manufacturing sector rebounded strongly in May, an indication that U.S. businesses continued to build stocks of pharmaceuticals that might yet be subjected to tariffs.
• Bitcoin hit a new all-time high this week, alongside the Nasdaq Composite and tech giant Nvidia. Here are some factors behind bitcoin’s rise—and risks that could derail it going forward.
• Global oil supply is set to rise three times faster than demand this year, the International Energy Agency said in its closely watched monthly report. However, seasonal factors are keeping the market tight in the short term.

• The private-equity industry has almost all the pieces in place to start managing Americans’ 401(k) money—everything but the customers.
• A failed GOP effort to block a jumble of state AI privacy and security laws has developers calling for “consistent standards.”
• It’s never been easier to create your own app with “vibe coding.” Now, professional software engineers are bringing it into the enterprise.
• Some creators say their work has been wrongly tagged as AI on tech platforms, hurting their reputation, while some all-artificial ads get through undisclosed.

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 news associate Roshan Fernandez in New York. Send your tips, suggestions and feedback to roshan.fernandez@wsj.com.