The Federal Reserve said its board of governors has voted unanimously to renew the five-year terms of 11 reserve bank presidents. Usually an uneventful administration process, it attracted attention this year due to President Trump's pressure campaign on the central bank to cut interest rates. Meanwhile, investors are warming to bonds again: Despite mixed messages on Wednesday from a divided Fed, many still saw indications that even modest weakening in the labor market could spur the central bank to cut again within the next few months. And a top financial regulatory body is set to adopt a new approach to assessing threats to U.S. financial stability as the Trump administration looks to loosen oversight of financial firms and prioritize economic growth, according to Treasury Secretary Scott Bessent.

The Federal Reserve’s board of governors voted unanimously to reappoint 11 reserve bank presidents to new five-year terms beginning March 1, 2026, the central bank said on Thursday.

The presidents of the Fed’s 12 quasi-private reserve banks are chosen by the individual banks’ boards of directors, whose members are typically business or nonprofit executives, but those selections must be approved by the Washington-based governors. All 12 presidents are up for reappointment at the same time every five years.

Signs this week that the Federal Reserve remains open to reducing rates in 2026 have been welcomed by investors, who had been prepared for the central bank to deliver a “hawkish cut”—lowering its benchmark federal-funds rate but signaling strong reluctance to make further adjustments. Stocks have rallied alongside bonds, with the Dow Jones Industrial Average on Thursday climbing to a new record.

The Trump administration is intensifying its crackdown on refugees, tightening rules for people seeking permission to live in the U.S. on humanitarian grounds. The move shines a spotlight on the three million U.S. residents who arrived as refugees, often putting down roots and rising up the economic ladder.

Treasury Secretary Scott Bessent on Thursday outlined plans to rework the way a top financial regulatory body monitors the U.S. financial system for risks, as part of the Trump administration’s broader agenda to loosen oversight of financial firms in favor of an approach that it argues promotes growth. The Financial Stability Oversight Council, a panel of U.S. regulators formed in the aftermath of the 2008-09 financial crisis, will adopt a new approach to assessing threats to financial stability, Bessent wrote in a letter he posted on social media. Bessent said the council, which he chairs, will now prioritize economic growth and security and pinpoint ways to ease regulation through its work. That is distinct from FSOC’s earlier approach to evaluating risks, which he argued led to onerous regulation and stymied growth. (Barron's)

“I am the lone Democrat at the SEC,” she told an audience at the Brookings Institution think tank on Thursday. After Jan. 3, the commission may find itself with three Republican members and no dissenting voice. “I fear that the very core of our intricate market structure is under attack,” she said. “And instead of safeguarding our markets for investors to fund their retirements in safe and sustainable ways, we are moving in a direction where markets start to look like casinos.” (Barron's)

8 a.m.: Federal Reserve Bank of Philadelphia President Anna Paulson speaks before the Delaware State Chamber of Commerce
8:30 a.m.: FRB Cleveland President Beth Hammack speaks at University of Cincinnati Real Estate Center Roundtable Series event
10 a.m.: Personal Income and Outlays - Estimated Date

10 a.m.: NAHB Housing Market Index
10:30 a.m.: FRB New York President John Williams speaks at New Jersey Bankers Association discussion on economic growth
6 p.m.: G20 Sherpas, Finance and Central Bank Deputies Meetings

A weakening U.S. labor market will keep the Fed in interest-rate cutting mode despite stubborn inflation, Natixis economists say in their 2026 outlook. They forecast core PCE around 3% (versus the Fed's 2% target) and unemployment reaching 4.7% before easing to 4.5%, up from 4.4% in the latest payrolls report. The fed funds target rate's top of the band would fall to 3% from the current 3.75%. Natixis expects shorter-term Treasury yields to fall driven by Fed cuts, while longer-term ones would rise on fears inflation would trigger hiking. It forecasts the year-end 10-year at 4.6%, up from 4.11% now, and two-year at 3.4%, up from 3.51%. — Paulo Trevisani

The outlook for U.S. rates, as well as that of the composition of the Federal Reserve's FOMC, will be further complicated by political interference over the coming months, First Abu Dhabi Bank analysts say in a note. Once Fed Chair Jerome Powell's term comes to an end in May, President Trump will possibly want to replace him with a committed dove—Kevin Hassett, director of the National Economic Council, appears to be his favored candidate. First Abu Dhabi Bank's analysts express hope that "common sense will prevail" and that the next Fed chair will be appointed for his or her economic prowess rather than their political persuasion. — Emese Bartha

Some Fed watchers had been concerned that Trump-aligned members of the Fed's board could try to help the White House gain more control over the Fed's policy committee by pushing back on the reappointment of some of the central bank's regional reserve-bank presidents to new five-year terms. The Fed says Thursday that 11 of those reappointments have been processed, removing the risk that the White House could push for more sympathetic presidents at the reserve banks. Raphael Bostic, president of the Atlanta Fed, wasn't reappointed given his pending retirement. Bostic announced his planned retirement last month; his path to reappointment had been clouded, in some observers' eyes, by his disclosure three years ago that he had failed to adhere to rules governing senior officials' personal-financial transactions. — Matt Grossman

• U.S. wholesale inventories jumped in September at the fastest rate since February, driven by nondurable goods. Inventories at merchant wholesalers rose 0.5% from a month earlier, after declining 0.1% in August, according to Commerce Department figures published Thursday. (Dow Jones Newswires)
• Canada logged its first trade surplus in eight months in September as exports rebounded and domestic demand showed signs of softening.
• The U.K. economy contracted for a second straight month in October, cementing expectations that the Bank of England will lower its key interest rate next week.
• China plans to implement a steel export licensing mechanism next year, a move that could curb outflow of the metal that has been the subject of trade spats across the globe.
• The Trump administration’s seizure of a tanker full of Venezuelan crude hits Nicolás Maduro much harder than airstrikes on alleged drug boats. It raises an existential crisis for a regime that runs on oil revenue.

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.