On Monday morning, Trump again lashed out at Powell on his Truth Social, calling the Fed chair "a major loser" and demanding he lower interest rates "NOW." The stock market, which had begun to calm from tariff-induced panic, quickly plunged, with the S&P 500 closing down 2.3%.

President Donald Trump is badgering the Federal Reserve to cut interest rates, but even if the Fed gave in to the pressure, it wouldn’t necessarily lead to lower borrowing costs for consumers.

Key Takeaways Officials at the Federal Reserve discussed the possibility of cutting the central bank's key interest rate as soon as June if the economy takes a turn for the worse.The Fed is currently in a holding pattern,