Is it even possible to have lower interest rates?

The tail wagged the dog. If you want a stark illustration of how power is shifting in the world economy, try this: had it not been for the slowdown in growth in China, the US Federal Reserve would almost certainly have increased interest rates last Thursday. “Heightened uncertainties abroad,” was the phrase used by Janet Yellen to describe what tipped the Fed to holding off – but the only uncertainties that matter to the world’s largest economy are those in the second-largest one. Could you imagine US policy being affected by uncertainties in Greece? Er, no.