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.

The Fed releases a report called the Summary of Economic Projections (SEP) four times per year, which tells the public where members of the Federal Open Market Committee (FOMC) believe inflation, economic growth, the unemployment rate, and interest rates could be in the future.

Traders boosted bets the Federal Reserve will start cutting interest rates in June and deliver a total of three quarter-point reductions to the policy rate by October, as U.S. President Donald Trump announced new tariffs on imports,