Cyclicals to bear brunt of any future rate hikes

The most recent interest rate hike by the Fed shows no sign of slowing down the economy or worrying the market. Two weeks ago, the Fed funds target interest rate went up by 0.25% to 5.75%. Since last June there have now been five 0.25% increases. The minutes of the Fed's policy-making Open Market Committee reveal that many members had favoured a rise of 0.5%, suggesting that the lower rate will not be enough to damp down the robust US economy, now in a record-breaking ninth year of expansion. Tom Walker, head of the Americas team at Martin Currie, is confident Fed chairman Alan Greens...