The rate rise heard around the world: Janet Yellen prepares for her big decision

If, as expected, the Federal Reserve raises US borrowing costs this week, the reverberations will be felt not just in America, but the global economy too

Wall Street watchers are calling it the most seminal moment for the global economy since the collapse of Lehman Brothers unleashed a savage financial and economic crisis in 2008. This week, policymakers at the US Federal Reserve are finally expected to begin reversing the emergency measures they took as the world slid into recession.

Janet Yellen, the Fed's chair, had signalled that the central bank could raise interest rates from their record low of 0.25% in September; but the downturn in the Chinese economy, and the resulting turmoil in financial markets, persuaded the Fed to stay its hand.

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