Fed's decision could pressure European Central Bank to step up stimulus efforts

“There’s been this assumption in the eurozone that Americans would raise rates and the European economy would be able to rely on a strong US economy and a strong dollar,” said Simon Tilford, deputy director at the Centre for European Reform, before the Fed’s decision. With emerging markets slowing and any tighter money cycle in the US expected to be slow and gradual, “this strategy is built on very flimsy foundations.”

That leaves Europe with the same problem it has confronted for years, no matter what the Fed did on Thursday: how to generate a home-grown expansion amid high unemployment and weak investment.

“It’s too big to rely on exports,” Mr. Tilford said.