Repercussions of Fed's rate rise can be easily absorbed

In a vote of confidence in economic growth and job gains, the US Federal Reserve on Wednesday raised its key interest rate by a quarter of a percentage point to a range of 1.25 percent to 1.50 percent. It was the third time this year the Fed has raised the rate, and it projects three more increases next year.

The move, though expected, will cause ripples around the world. One concern that has been raised is the higher returns in the United States could lure capital out of developing countries, including China.

But the Fed first raised its rates from nearly zero in December 2015 as the country recovered from the 2008-09 recession, and the scenario of massive capital outflows from China never really materialized.