President Trump has told advisers that he wants to move quickly to announce a nominee to replace Lisa Cook on the Federal Reserve’s board of governors, according to people familiar with the matter. The Wall Street Journal's Greg Ip writes that investors would be wise to assume that starting sometime in the next nine months, the Fed will set rates according to Trump’s preferences. Meanwhile, Americans are finding it increasingly difficult to find jobs, according to new data released Tuesday. That points to a weaker August employment report and supports mounting expectations that the Fed will cut interest rates next month.

The market response to President Trump’s Monday attempt to fire a Federal Reserve governor was relatively subdued.

Don’t let that fool you. If Trump’s effort to remove Lisa Cook for cause succeeds, and perhaps even if it doesn’t, this week will go down as one of the most consequential for financial markets in decades.

It could mark the end of the Federal Reserve’s independence from White House control, which it effectively obtained in 1951. As a result, inflation is likely to be higher and more volatile than in the decades before 2020.

• Trump Weighs Quickly Announcing Nominee to Replace Lisa Cook on Fed Board
• Lisa Cook, the Fed Governor at the Center of a Firestorm
• Trump’s Fed Aggression Poses New Legal Test of Presidential Power
• Bessent: Trump is ‘Restoring Trust’ at the Fed

11:45 a.m.: Federal Reserve Bank of Richmond President Thomas Barkin speaks before the Greensboro Chamber of Commerce
7 p.m.: U.S. tariff on India imports rises to 50%

8:30 a.m.: 2nd estimate GDP
8:30 a.m.: Unemployment Insurance Weekly Claims Report - Initial Claims
10 a.m.: Pending Home Sales Index
11 a.m.: Federal Reserve Bank of Kansas City Survey of Tenth District Manufacturing
6 p.m.: Federal Reserve Governor Christopher Waller speaks at Economic Club of Miami Dinner

The U.S. housing market may be showing signs of movement on paper, but for many Americans, the market has stalled, says Realtor.com. The housing market slowdown touches everyone from buyers to sellers to builders, Realtor.com says. Despite facing different pressures, each group is reacting the same way: with hesitation and retreat. Home sales remain near multi-decade lows, despite 21 consecutive months of rising inventory. Prices have stabilized in many regions, but elevated mortgage rates and economic uncertainty are keeping buyers and sellers on the sidelines. For buyers, affordability is still a major hurdle. The national median list price remains near $440,000, relatively unchanged since 2022, while mortgage rates have climbed, pushing monthly payments higher. And incomes have not kept pace with the increased cost of homeownership. — Chris Wack

September looks like the last chance for the European Central Bank to lower interest rates in the eurozone, Pantheon Macroeconomics' Claus Vistesen and Melanie Debono write in a note. The bank at its last meeting in July held its key rate at 2.00%, and investors now mostly expect the governing council to keep its hands off the scissors and next month's meeting in Frankfurt. That could change if consumer-price inflation proves weaker than expected in August, Vistesen and Debono say, with figures for eurozone CPI due to be released next week. Inflation is meanwhile likely to spike further ahead as energy and good prices gain pace, the economists say." The window for further easing this year will slam shut as inflation rebounds from September," they say. — Joshua Kirby

• Canada’s manufacturers and wholesalers look to be steadying after taking a hit this year from trade uncertainty and higher tariffs, with early estimates of sales suggesting a tailwind for a sluggish economy entering the third quarter.
• Canada needs a big lift in construction if it is to close the housing shortage it faces over the next decade, even with the pace of immigration slowing, a report by the country’s budget watchdog suggested.
• The mood among German consumers continues to darken as the pressures besetting Europe’s largest economy take their toll on sentiment.
• Australia’s monthly inflation indicator jumped to its highest level in a year in July, affirming the Reserve Bank of Australia’s cautious approach to cutting interest rates over recent months.

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.