Investors Scale Back Inflation Bets, Signaling Doubts About Growth

Traders have begun pricing in a small chance of the Federal Reserve cutting rates this year, a move that could nudge inflation higher. Above, Fed Chairman Jerome Powell. Photo: Joshua Roberts/Getty Images 106 Comments By Akane Otani Akane Otani The Wall Street Journal Biography Updated March 3, 2019 2:28 p.m. ET

Bets on a pickup in inflation are falling out of favor, underscoring investors’ skepticism that the U.S. economy will be able to turn stronger after a soft start to the year.

The growth outlook has dimmed over the past year as measures of manufacturing activity, consumer spending and

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