The Fed Announcement Heard Around the World

After months of expectation, with rivers of ink having been spilled and hours of economics talk shows taken up with speculation, on Wednesday the Federal Reserve finally ended the suspense and raised interest rates by a quarter of a percent. Considering the buildup, it would be easy to see the event as something of an anticlimax. The interest rate is ultimately expected to get up to mid-single digits, so a 0.25 percent raise from near zero is pretty underwhelming in the grand scheme of things. And given the length of the run-up and the warnings they have received, the markets ought to be prepared for the news, and the immediate effects will be almost fully priced in. Many around the world will be going to bed tonight wondering what all the fuss was about. But even if the changes and effects of the move are not immediate, that does not...