A Fed rate hike means the US economy is strong. But the interest rate hike will be small and gradual.
An interest rate hike will negatively impact borrowers, increasing the cost of borrowing. Student loans, interest payment on credit cards, housing loans will all increase.
Senior citizens, consumers and savers should be happy since income from interest on savings will increase.
The Fed Funds will have an indirect effect on mortgage rates, which will be an adverse one.
It usually takes 12-months for the effect of an interest rate hike to be felt by the entire economy. Having said that, instant reactions that may be short-lived are usually captured in the stock markets.
Many unicorns like Uber (2009), Airbnb (2008) and Snapchat (2012) had either not existed or many were in nascent stage when the last hike happened (between 2004-2006). They have been operating in the low rate environment.