The Federal Reserve almost got it right today in its decision on interest rates and its explanations thereof. Alas, the two mistakes it made had the effect of badly roiling the stock markets in the immediate aftermath.

In the long run, the Fed’s actions and statements today will have a negligible effect on markets and on the real economy. The markets will probably continue to drop or at best stay in a holding pattern. But the lack of a rally will be due to non-Fed-related reasons, such as trade wars and a possible debt crisis. It won’t be because of further fears of interest rate hikes.