Fed delivers a hike and a subtle message

THE Federal Reserve did more today than increase its benchmark interest rates by a quarter-point, only the third hike in more than 10 years - it also took an important step forward in a gradual policy transition.

Hoping for what I have labelled earlier a "beautiful normalisation" of rates, the central bank is moving beyond strict data-dependency and becoming more comfortable about leading markets rather than following them. In the process of becoming more strategic and less tactical, the Fed will, and should, shine more …