The fight over the next Federal Reserve chair is playing out in Washington and on Wall Street, with industry titans and Trump allies taking sides and the candidates themselves jockeying for position. Meanwhile, the U.S. labor market is ending the year on a sour note: Unemployment rose and wage growth shrank in 2025, potentially setting up an even rougher 2026. Focus this week will center on a smattering of U.S. data releases, particularly GDP, as investors gauge the performance of the American economy after key economic figures were delayed during the recent government shutdown and look for clues on the likely timing of the next Fed interest-rate cut. Trade is set to be quiet, however, due to the Christmas and New Year holidays, with data thin on the ground. Elsewhere, China kept its benchmark lending rates unchanged on Monday, as the world's second-largest economy remains on track to meet its annual growth target.

President Trump told aides and allies in early December that he wasn’t sold on picking former Federal Reserve governor Kevin Warsh to lead the central bank, according to people familiar with the matter.

Trump said at a cabinet meeting he had narrowed his list to one. Interviews with other contenders were suddenly canceled. Everything pointed to Kevin Hassett, a longtime economic adviser who runs the National Economic Council.

Then came the reality-TV show plot twist. Warsh was suddenly back in contention with what Trump viewed as a strong interview last week, according to an administration official. Fed governor Christopher Waller is also in the running, interviewing with Trump this week and picking up backing from corporate chiefs. Rick Rieder, a senior executive at BlackRock, is scheduled to be interviewed by Trump at the president’s private Florida club Mar-a-Lago during the last week of the year, according to a senior administration official.

The People's Bank of China said Monday that the one-year loan prime rate will remain at 3.0% and the five-year rate will remain at 3.5%. Markets widely expected benchmark loan rates to stay unchanged this month, with Beijing on track to hit its annual growth target. Policymakers signaled at a key economic conference earlier this month that they might cut benchmark rates in 2026 as part of efforts to stabilize economic growth and lift consumer prices. (Dow Jones Newswires)

The U.S. labor market is ending 2025 on a sour note. While companies didn’t resort to full-scale layoffs, many did trim head count, especially later in the year. Many also stopped hiring. Fewer employees quit jobs.

Wage gains slowed. The unemployment rate drifted higher over the course of the year and last month hit its highest level in four years. The number of Americans who are unemployed rose over 700,000 to 7.8 million.

The charts here tell a fuller story.

8:30 a.m.: Chicago Fed National Activity Index
10 a.m.: Online Help Wanted Index

8:30 a.m.: Advance estimate GDP
8:30 a.m.: Advance Report on Durable Goods
10 a.m.: Consumer Confidence Index
10 a.m.: Richmond Fed Business Activity Survey

The U.S. labor market shows signs of weakness and is likely to cause the U.S. Federal Reserve to cut interest rates further, despite inflation being above target, AXA Investment Managers' Chris Iggo says in a note. "The delayed October and November U.S. payroll data confirmed what has been evident all year - jobs growth has stalled." Investors need to monitor U.S. labor market data for further signs of weakness, Iggo says. — Miriam Mukuru

• Retailers in Canada saw a jump in sales in November that retraces weak trade in recent months, hinting at a recovery in household consumption heading into the important holiday season.
• Eurozone consumer sentiment unexpectedly weakened in December despite cooling inflation and economic resilience against tariffs, a monthly indicator showed Friday.
• Japanese government bond yields continued their ascent, with the 10-year yield hitting a 26-year high, on expectations for further rate increases by the Bank of Japan after the central bank raised its rate to the highest in three decades on Friday.
• China Vanke, once the country’s largest home developer, is no longer too big to fail. As the state-backed property giant buckles under the weight of its debt, the government has so far refrained from stepping in.
• Beijing is now not only producing its own armaments, it is also selling more abroad. In some military technologies, China appears to be matching major arms producers such as Russia and the U.S., or even pulling ahead.

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.