Some Trump administration officials and allies have expressed concern that the Justice Department’s criminal investigation into Federal Reserve Chair Jerome Powell could imperil the president’s nominees in the Senate and rattle financial markets. Senate Republicans criticized the investigation, defending the central bank’s autonomy against what some GOP lawmakers called an overtly political probe by the Trump administration. Meanwhile, Powell has found an unlikely army standing behind him: the meme-stock crowd.

Among those alarmed about potential fallout from a probe into Jerome Powell was Treasury Secretary Scott Bessent, who called Trump Sunday night and told him that the investigation could cause several issues for the administration. Bessent was worried about an impact on financial markets and hurdles during the Senate confirmation process for whomever the president selects to be the next Fed chairman. Bessent’s prediction proved prescient. Late Sunday, after the probe became public, Sen. Thom Tillis (R., N.C.) said he would oppose any Fed nominee put forward by Trump “until this legal matter is fully resolved.”

• Global Central Bank Heads Back Fed’s Powell
• Wall Street, Former Fed Officials Slam Powell Probe
• Trump Didn’t Direct DOJ to Investigate Powell, White House Says
• Hassett Says Markets Should Welcome DoJ Investigation
• Fed Chair Candidate Rick Rieder Wants to Drop Rates to 3%
• The Fed-Trump Feud: What You Need to Know
• Germany, Angola, Nigeria: Other Countries That Investigated Their Central Bankers

• Warren Says White House Weaponized DOJ Against Powell

Jerome Powell won over many individual investors for his stewardship of an economy that has helped propel the stock market to record highs. So when he delivered a stern message Sunday accusing the Trump administration of using the threat of criminal prosecution to pressure the Fed into making additional interest-rate cuts, some of those extremely online investors had his back.

Until recently, President Trump has called Democrats’ focus on affordability a hoax, but the issue has since taken on urgency in his administration. The president has announced many proposals aimed at gaining more leverage over the economy and the cost of living. He has done it by upsetting Wall Street supporters and pitching ideas more closely associated with liberal Democrats.

For most Americans, cheap oil is good news. In Midland, Texas, it is a problem. Oil prices have mostly slumped since last spring, and the U.S. intervention in oil-rich Venezuela is stoking President Trump’s desire to push prices down further. This raises a new risk for Midland, where restaurants are already less crowded, barbers are idling around waiting for customers and a host of businesses linked to the oil field are feeling squeezed.

Capital One Finance has agreed to pay $425 million over claims it misled consumers about a high-yield savings program. A court on Monday preliminarily approved a settlement for restitution payments, New York Attorney General Letitia James said.

8:30 a.m.: CPI
10 a.m.: RCM/TIPP Economic Optimism Index
4 p.m.: Federal Reserve Bank of Richmond President Thomas Barkin speaks at CFA Society Washington, DC event

10 a.m.: FRB Philadelphia President Anna Paulson speaks at Chamber of Commerce for Greater Philadelphia State of the Economy event
10 a.m.: Online Help Wanted Index
10 a.m.: Existing Home Sales
12 p.m.: Federal Reserve Bank of Minneapolis President Neel Kashkari speaks at the Midwest Economic Forecast Forum
12 p.m.: FRB Atlanta President Raphael Bostic speaks at Atlanta Business Chronicle Economic Outlook event
2 p.m.: Federal Reserve Bank of New York President John Williams speaks at 'An Economy That Works for All' event
2 p.m.: U.S. Federal Reserve Beige Book

The dollar is expected to face increased volatility this year due to rising political pressure on the U.S. Federal Reserve, Rabobank's Jane Foley says in a note. Markets worry that the Fed could lose its independence due to the government's demands for lower interest rates and pressure on current chair Jerome Powell. However, some argue that members of the Federal Open Market Committee could provide balance against a Fed chair who favors lower interest rates amid elevated inflation, Foley says. Uncertainty around the credibility of the Fed going forward could put downward pressure on the dollar "without sending it into free-fall," Foley says. — Miriam Mukuru

• House prices in the U.K. are expected to rise in 2026, with Scotland and Northern England showing the strongest growth and sales prospects and London and Southern England likely to lag, a report from real-estate website Zoopla said.
• The eurozone’s saving rate fell in the third quarter of last year, helping support the economy as spending modestly recovered.
• Trading volume across mainland Chinese stock exchanges reached a record high of $521.80 billion on Monday, as a slow bull market is taking shape amid the country’s supportive measures and progress on artificial intelligence.

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.