Fed will be very careful about hiking rates - but it's about time

FEARS of a US interest rate hike are back yet again, this time for good. The Federal Open Market Committee (FOMC) meeting - which comes with a press conference - ends on Wednesday.

The market should be under no illusion about rates going up soon. Fears of a destabilising increase are overdone, however. A rate hike should not be feared if it is small and in line with economic improvement.

At quarterly meetings like the FOMC's June get-together, there is a press conference. The Fed meets in other months too, but there is no press conference then. So if a hike is to take place this year, markets have pinned down…