Fed Could Raise Rates In September: What Does It Mean?

This week, the US Federal Reserve issued a statement suggesting that the bank was considering a September rate hike. Fed officials wrapped up this month's two-day policy meeting on a positive note, saying that the US economy was "expanding moderately" and that the job market has seen steady improvement.Who Will Benefit?Low interest rates have been detrimental to banks and lenders, as they've been pushed to dole out loans at low rates. Companies like JPMorgan Chase (NYSE: JPM) and Bank Of America (NYSE: BAC) have seen their revenue stumble in past quarters, something many analysts have attributed to the Fed's accommodative policies. However, murmurings of a rate hike have been positive for shares in the financial sector as that industry stands to gain should the rate increase take place in September.Who Will Lose?Bond funds are likely to suffer following a rate hike, as rising interest rates will likely have a negative impact on prices. Homebuyers will also suffer, as their ability to negotiate a low-rate mortgage will diminish. Many worry that equity markets will also slide following a rate hike, though some say that since the rate hike is a consequence of a stronger economy, share markets will be able to withstand the rate change.A Sure Bet?As always, the Fed's statement was indirect and did not provide concrete evidence of the bank's plans for September. Analysts took wording changes to the bank's forward guidance as reason to believe that its intentions were shifting, but Fed Chair Janet Yellen has been adamant in saying that the bank's decision will be data driven. Much of the rate hike discussion will depend on upcoming economic indicators from the US, which will provide a better picture of whether or not the economy is strong enough to withstand a rate hike in September.