The Federal Reserve is expected to announce an interest rate hike at its meeting later on Wednesday and market watchers are looking at the potential impact on emerging market assets.
The U.S. central bank raised its federal funds rate by 25 basis points in December of last year and March this year. Another quarter percent hike has been broadly priced in by markets.
Morgan Harting, portfolio manager of emerging market multi asset portfolio at AllianceBernstein, dismissed concerns that policy tightening by the Fed would be negative for emerging markets.
"What we see is when growth is strong the Fed tends to be raising rates. The last time the Fed really raised rates was in 2004, when it went from 1 percent to 5.25 percent and over that time we saw emerging market assets rally by 135 percent," he told CNBC's Squawk Box on Wednesday.
"We've seen emerging markets rally quite strongly since the first one into this. I think the Fed is communicating an environment of strong growth and one in which inflation remains relatively benign."