Emerging market should not worry about Fed: Geoff Lewis

The US Federal Reserve announced it will begin rolling off its USD 4.5 trillion balance sheet in October. The Fed did not raise its benchmark interest rate, as expected. But policymakers indicated another hike is likely this year, while maintaining its view for three rate hikes in 2018.

In an interview to CNBC-TV18, Geoff Lewis of Manulife Asset Management spoke on what he makes of Janet Yellen's statement.

This is an important decision by the Fed and it has been flagged well in advance and they are going to be a little bit practical. I don’t regard this as hawkish, he said.

This balance sheet unwinding is going to take place over a number of years so from that point of view, it shouldn’t be disruptive to financial markets, he added.

He also acknowledges the fact that Bank of Japan (BoJ) and European Central Bank (ECB) are continuing with their quantitative easing (QE) programmes this year with the maximum increasing global QE, said Lewis.

Emerging markets should not worry about Fed, he further mentioned.

Excess supply in oil will narrow, aiding in keeping the oil prices in check, he said.

For full interview, watch accompanying video...