Get ready: Interest rate hikes bring good and bad (AP)

The rate hikes are coming! The rate hikes are coming!

Mark Norman Francis/GettyAs the arbiter of monetary policy for the largest economy in the world, the Federal Reserve is usually thought of as having a pretty solid grasp on all things economic.

NEW DELHI: The US Federal Reserve, at the end of its two-day meet on Wednesday, said that it has decided to keep interest rates at between 0.25 per cent and 0.5 per cent, and has also reduced the number of interest rate hikes expected this year to two from four earlier. This is enough to bring risk-on rally back on Indian markets, say experts. However, the US Central Bank noted that the economy continues to face risks from an uncertain global economy which will keep inflation low for the rest of 2016.

The cost of raising interest rates too soon is much higher than raising them too late. Remember the Fed's vow of patience?:

FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors. Retirees need to be ready for rising interest rates (Fox Business)

A rate hike is coming. It is coming because the economy is not in crisis and zero rates are crisis rates, Bloomberg’s Richard Breslow writes. It is coming because the benefits of starting down the path to monetary policy normality are vitally important to the future health of the economy and restoring the Fed’s reaction function.

Robert Solow reviews Alan Greenspan's book:

Labor market conditions have improved significantly in the past month or so. Combine this with the dramatic improvement in households' finances this year, and one is forced to ask: why is there still so much pessimism in regards to the economy?