Let me turn my attention briefly to the likely response of longer-term yields, which, as I have noted, reflect both a term premium component and expectations of the future path of short-term interest rates.
The recognition of this is one factor that has been affecting markets in the past couple of months. Stock markets have been more volatile, bond rates have risen a little, and some emerging-market currencies have come under pressure. But this was bound to happen sooner or later, and the sooner it did the better.