Traders are now betting the Federal Reserve will cut at least four times this year, amid fears Trump’s tariffs could tip the U.S. into a recession.

Odds of five quarter-point cuts coming this year jumped to 37.9%, up from 18.3% one day prior, according to data from the CME Group on Friday morning. That would put the federal funds rate to 3.00% to 3.25%, down from 4.25% to 4.50% where it has been since December.

Markets are also pricing in a roughly 32% chance the federal funds rate will fall to 3.25% to 3.50%, which would mean four quarter-point cuts from the Fed.

At the same time, the likelihood of a half-percentage point cut coming in June also jumped, to 43.8% from 15.9% previously.

The implied odds the Federal Reserve will cut aggressively rose, after Trump’s tariffs raised fears of a global trade war, and hurt economists’ forecasts for both growth and inflation. Investors are expecting that a slowdown in economic growth could spur the Fed to lower rates in a bid to avoid a recession.

However, many worry the Fed has a tough road ahead of them, as the central bank would have to cut rates in an environment where inflation has yet to go down to its 2% target. If implemented, the tariffs are expected to drive core inflation north of 3%, possibly even as high as 5% according to some forecasts.

On Friday, Roger W. Ferguson, economist and former Fed vice chair, told CNBC the Fed may not cut at all this year, saying the central bank has to worry about the inflation part of its mandate.

— CNBC’s Jeff Cox contributed to this report.

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It’s milestone month for the exchange-traded fund industry.

Actively managed ETFs now have more than $1 trillion in assets under management, according to independent research firm ETFGI.

That’s roughly the market cap of Berkshire Hathaway, Saudi Arabia’s gross domestic product and the value of 121 New York Yankees franchises.

The ETF Store’s Nate Geraci thinks it will grow even bigger due to the appetite for new active investing strategies.

“It’s interesting for an industry where the roots are passively managed products. That’s what the industry was built on,” the firm’s president told CNBC’s “ETF Edge” this week. “It’s interesting to see active ETFs getting all of the attention right now.”

Geraci finds most of the flows are going into “much more systemic strategies,” including a combination of passive and aggressive.  

“When you look at the growth in the number of actively managed ETFs out there … these aren’t what you necessarily think of as traditional active,” he added. “It is products like options-based income ETFs [and] buffer ETFs.”

Actively managed ETFs now comprise almost one-tenth of the ETF industry, according to VettaFi’s Kirsten Chang.