US Fed - To raise or not to raise?

Come September 18, the most hotly debated decision will be known: whether the US Fed will raise its interest rates. Here is my cow sense on what will happen and why:

The Fed is likely to raise rates, if not this time, at least by 2016. Rates have been held close to zero since December 2008. Amidst a lamentable recovery, the Fed's dual mandate of employment and price stability have been about met: Unemployment has halved to 5.1% since its peak in 2009, and inflation, at 0.2% (for the last 12 months till Aug 2015) is slowly approaching its target of 2% (Inflation for a large part of 2014 was nearer 2%).

In addition, assets are reaching "bubble" territory. In her July 15 semi-annual testimony to the Senate Committee, Janet Yellen has alluded to this herself by warning that she sees signs of asset price bubbles forming in some markets such as those for leverage loans and lower rated corporate debt, while indicating that stocks aren't overvalued. Car sales are rising at the quickest pace in a decade (also fueled by low pump prices), while commercial real estate prices are going through the roof.

Detractors (i.e. the World Bank, Lawrence Summers, Lloyd Blankfein) claim that raising rates would hurt a fragile recovery and impact emerging markets; the higher interest rates would cause outflows from emerging markets into the US. However, as pervasive as the impact of this decision may be, the US has to tend to its own backyard in order not to sow the seeds for runaway inflation and asset bubbles, as during the Greenspan era.

Whatever the case, it is most certain that a rate raise will happen; if not in September, at least within 6 months. Should it happen on September 18, it will be largely priced in as the Fed has done a good job of preparing the markets for it. If it doesn't, the markets will likely continue with its upward trajectory.