Goldman's (GS) Cohn Sounds Off on Fed's Move to Raise Rates (FXE) (UUP) (OIL)

While Fed chair Janet Yellen & Co. are expected to hike its benchmark rate later this year, would that actually have the effect of hampering U.S. growth?

Goldman Sachs COO Gary Cohn thinks it might. During an interview with Bloomberg on Wednesday, Cohn noted that the stronger dollar is going up against weakness in international markets and a higher rate will only exacerbate that move.

Blue-chip companies as of late have been echoing similar sentiment. Just today, Pepsi (NYSE: PEP) said it expects earnings growth to be reduced by 7 percent due to the impact of foreign exchange rates. Microsoft (Nasdaq: MSFT) and Proctor & Gamble (NYSE: PG) are others echoing similar sentiment.

While the Fed works to exit from its six-year stimulus plan, others are looking to keep inflation in check. The European Central Bank, Bank of Canada, and Reserve Bank of Australia, for example, are all enacting stimulus programs in their respective countries, while China's slowing growth is causing its central bank to make concessions in bank regulations in order to spur continued lending.

Despite gripes from international mega conglomerates, most service industries won't be as harshly affected. The stronger dollar will also bring in cheaper oil and other imports to boot.

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