Trump’s demand that the Federal Reserve lower interest rates could undermine investors’ confidence in the central bank's next chair, economists and former U.S. policymakers say. A top Fed official warned that new tariffs might slow the U.S. economy, and suggested rising unemployment—not higher inflation—could be the main risk from the Trump administration's trade policies. China aims to implement more growth-supporting measures amid rising challenges from hefty U.S. tariffs. And Russia’s central bank on Friday left its key interest rate unchanged for a fourth straight meeting.

President Trump called Federal Reserve Chair Jerome Powell a “major loser” this week for refusing to immediately drop interest rates to cushion the blow from his erratic trade war.

But even though he backed off from an implied threat to terminate Powell, Trump’s conduct underscored how the bigger loser from his pressure campaign could be whomever the president chooses to take Powell’s job next year.

Prices are likely to rise soon and shortages of popular consumer goods could even start to develop next month unless the White House reduces tariffs soon, especially punitive duties on China that go as high as 145%. That’s what major retailers, manufacturers, shipping experts and other companies are telling investors, the public and even the president himself. (MarketWatch)

10 a.m.: University of Michigan Survey of Consumers - final
10:15 a.m.: Atlantic Council fireside chat Bank of England Monetary Policy Committee Member Megan Greene
1 p.m.: SEC Crypto Task Force roundtable

10 a.m.: U.S. Housing Vacancies
10:30 a.m.: Texas Manufacturing Outlook Survey

The median home-sale price declined year over year in 11 of the 50 most populous U.S. metro areas during the four weeks ending April 20, according to Redfin. The last time home prices dropped in that many metros was in September 2023. Prices declined most in San Antonio, Oakland, and Jacksonville, Fla. Nationwide, the median home-sale price rose 2.1% year over year, the slowest growth rate since July 2023. Home prices are falling in many major metros because many house hunters are backing off, but the number of homes for sale is holding up. Home tours are slowing, mortgage-purchase applications are falling, andwould-be buyers are ultra-cautious amid high housing costs and widespread economic uncertainty. Pending home sales are down 0.3% year over year. — Chris Wack

• The Canadian economy faces short-term turbulence due to the fallout from President Trump’s trade policy, including the risk of tariff-fueled inflation, the country’s finance minister said Thursday.
• The European Central Bank should keep lowering interest rates at its next meeting in June if forecasts show eurozone inflation falling below the bank’s 2% target, governing-council member Olli Rehn said.
• Retaliatory tariffs against the U.S. would push inflation in the U.K. higher, Bank of England Governor Andrew Bailey said Thursday. 
• U.K. consumers are growing more pessimistic as they fear the weight of trade tariffs and renewed high inflation, according to a survey released Friday.
• U.K. retailers proved resilient in March, unexpectedly posting a rise in sales, though tariffs and the resulting economic uncertainty could stifle business in the months ahead.
• Consumer inflation in the Tokyo metropolitan area accelerated as many Japanese companies raised prices of products and services in April to coincide with the start of the new fiscal year.
• Ukraine said it failed to strike a deal to restructure $2.6 billion of debt securities, heightening its risk of default.

As financial stress mounts, chains like Dollar Tree and Academy that cater to the budget-conscious are seeing more of a new class of shoppers.

Businesses need to prepare for the AI-driven rise of a relentless, always-on economy.

Private-equity firms see opportunity in a sector they once considered too unreliable: advertising.

As tariff wars raise supply-chain uncertainty and green initiatives see a pushback, some renewables-focused companies are forging new relationships, including in the defense industry.

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.