Tariffs set to take effect this week risk stoking even higher inflation and slower growth than expected, complicating the central bank’s decisions on monetary policy.

Traders on Friday bet the Federal Reserve will wait until June to start cutting interest rates after a government report showed stronger than expected jobs growth last month, even as they bet that the first rate cut will be a bigger-than-usual half-point reduction.

Traders and economists see increased chances of cuts ahead but Federal Reserve Chair Jerome Powell said central bankers will wait to see the effects of new tariffs.