Janet Yellen and Fed left with face full of egg after interest rate rise blunder

Four weeks and one market meltdown later, US central bank's decision to opt for early rate hike no longer looks so clever

Turn the clock back a month. It is the week before Christmas and the Federal Reserve has just raised interest rates for the first time in almost a decade.

The mood in the markets is upbeat. A so-called Santa rally is in full swing. Dealers say the US central bank has played a blinder by keeping Wall Street sweet. If there were Oscars for central bankers, Janet Yellen would be picking up the golden statuette.

Related: US stock markets take a major fall as Dow reaches lowest level since 2014