Markets to fall on Fed taper, warn investors Although markets are expected to fall once the decision is taken, most fund managers do not expect the US to start cutting interest rate rises imminently. Some 22pc of respondents to the survey expect rates to rise within the next 12 months and 48pc believe the first hike will be before the end of 2015. Nick Lewis, head of trading and market risk at Capital Spreads, said: "Professional investors seem confident that interest rates in the US, will remain low for the foreseeable future which should have a positive impact on consumer sentiment and allay fears around the housing market. Real fears prevail, however, over the market aftershocks following the commencement of tapering. It is clear that, however gently the Fed is able to implement the winding down of QE, investors are fearful and are positioned for a sell-off. In short, we may be in for a very bumpy 12 months for global equities - and particularly US equities.