After lift-off

THERE was a time when a nudge up or down in interest rates was seen not just as normal, but testament to central bankers’ ability to fine-tune the economy. Not now. The Federal Reserve is widely expected to raise its benchmark interest rate, currently close to zero, by a quarter of a percentage-point on December 16th. That would be its first increase since June 2006 (see ). Unfortunately, the Fed’s reasons for moving this month reflect its fear of losing credibility with the markets as much as its mastery of the economy.