The Federal Reserve lowered its key interest rate by a hefty half percentage point Wednesday, moving ahead with its first rate cut in four years. As a result, the value of the dollar abroad fell slightly. Nevertheless, there's no need to rush to the nearest foreign currency exchange bureau if you have a trip abroad planned in the near future.

But while the Fed’s action will surely have political consequences, it wasn’t a political decision. The straight economic case for a rate cut was overwhelming; the case for a big cut was very strong. Not cutting would have been political. And the Fed didn’t let itself be bullied into inaction.