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U.S. Federal Reserve Chair Janet Yellen.
U.S. Federal Reserve Chair Janet Yellen.
(John Gress/Reuters)

Fed unlikely to follow Carney's lead on rates, despite stronger economic growth

The U.S. Federal Reserve appears about to cede the race to become the first major central bank to tighten monetary policy in the postrecession recovery.

A suddenly hawkish Bank of England Governor Mark Carney moved into the pace position last week when he declared that Britain’s first rate hike in seven years “could happen sooner than markets currently expect.” With a stronger-than-forecast economic rebound, falling unemployment and Mr. Carney’s pointed signal, market participants are now looking at a possible increase later this year, lopping nearly two years off their previous timetable for a dramatic reversal of rock-bottom rates.