The Fed just ended Washington’s cheap-money era

The Federal Reserve’s decision Wednesday to raise its benchmark interest rate by a quarter percentage point to 4% surprised almost no one. Inflation is considerably above the Fed’s 2% target. Economic activity is expanding at a solid pace. Capital investment is robust, job gains have kept pace with the workforce, and unemployment has changed little. The vote was unanimous.

Those are the conventional reasons for the hike. But the White House and Congress should pay attention to another message the Fed is sending: the government cannot count on cheap borrowing anymore.