When the U.S Federal Reserve hikes rates, who wins, who loses, who draws

When the U.S. Federal Reserve hikes rates the U.S. dollar will win. Others won't be so lucky.

The longest drumroll within the 102-year history of the Federal Reserve precedes its next interest-rate increase. That doesn\’t mean some of its effects will not be surprising.

Investors can pay now for Fed rate hike, or pay more later

Investors will pay now, or may more later because the longer the Fed waits to boost rates, the greater damage it might foist on stock markets. Read on

\”This is really a major inflection point,\” said Erik Davidson, chief investment officer for Wells Fargo & Co.\’s private bank. \”The end of free money is in sight.\”

The policy-setting Federal Open Market Committee meets this week. It\’s expected to push the \”liftoff\” of interest rates till a minimum of September. In preparation, here are some expected winners and losers and those whose fortunes will probably stay steady following the Fed and its chair, Janet Yellen, raise the benchmark rate for the first time since 2006:

WIN: The greenback

The U.S. dollar could keep rallying after the rate increase, said Daniel Tenegauzer, head of emerging market and global foreign-exchange strategy at RBC Capital Markets in Ny. Other central banks are cutting rates and expanding the money supply, weighing down their currencies.

\”The Fed hikes, the dollar appreciates,\” Tenegauzer said.