THE Federal Reserve announced on Dec 16 that it would raise policy interest rates by ¼ to ½ of 1 per cent, ending the seven-year policy of keeping Fed interest rates near zero, and would embark on a path of "gradual" interest rate increases in order to "normalise" interest rates. This announcement had been long expected by pundits, economists and the financial markets, and, more to the point, had long been pushed by Wall Street and their supporters.

It was telling that the first question asked by a reporter in Fed Chair Janet Yellen's press conference following the announcement was not a question at all. The reporter blurted out a sigh of relief: "Finally!" he exalted. The Financial Times' Lex Column headline: "US Monetary Policy At Last".

In fact the financial media have been huge cheerleaders for a rate hike. In the months leading up to this announcement, much of the business press had been pushing for an increase. In September, when the Fed did not raise rates, much of the financial press ran headlines like this Wall Street Journal headline: "The FED Blinks". The Journal was not alone with phrases like: "the open market committee sat on its hands". Blinking and hands sitting: these suggest lack of courage, weakness and worse. Neil Irwin of The New York Times, personalised it to Janet Yellen with a headline on Sept 17: "Why Yellen Blinked on Interest Rates".